{"id":52651,"date":"2014-06-12T02:39:36","date_gmt":"2014-06-12T06:39:36","guid":{"rendered":"http:\/\/countingpips.com\/?p=52651"},"modified":"2014-06-12T02:39:36","modified_gmt":"2014-06-12T06:39:36","slug":"why-the-ramsay-health-care-ltd-share-price-rose-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/why-the-ramsay-health-care-ltd-share-price-rose-today\/","title":{"rendered":"Why the Ramsay Health Care Ltd Share Price Rose Today"},"content":{"rendered":"
June 12, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to the Ramsay Health Care Share Price?<\/h2>\n

Shares in hospital operator Ramsay Health Care Ltd [ASX:RHC]<\/strong> rallied by nearly 4% today, defying broader market anxiety leading into reporting season. Today\u2019s move has propelled Ramsay\u2019s shares to a gain of 9% in the year to date, including dividends.<\/p>\n

Why Did This Happen to the Ramsay Health Care Share Price?<\/h2>\n

For the past few weeks the market has struggled to digest the implications of Ramsay\u2019s intention to buy an 83% stake in its French counterpart, G\u00e9n\u00e9rale de Sant\u00e9 (GDS).<\/p>\n

It\u2019s a huge deal. There had been some chatter in the market that Ramsay would pay around $1.2 billion for that majority stake. That would amplify the importance of paying the right price.<\/p>\n

Yesterday Ramsay announced that it had agreed to pay $627 million to secure a controlling interest of 57% in GDS. With Ramsay\u2019s joint venture partner Cr\u00e9dit Agricole Assurances acquiring the balance of the 83% stake, the market now seems relieved that the deal has been done at a sensible price. <\/p>\n

Removing that overhang of transactional uncertainty got Ramsay\u2019s share price moving today.<\/p>

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What Now For Ramsay Health Care Ltd?<\/h2>\n

Ramsay shareholders should cheer this news. For the price Ramsay paid, GDS should make an immediate positive impact on RHC\u2019s earnings per share. <\/p>\n

This acquisition positions Ramsay as a large player in Europe at a time when a number of European governments are seeking to encourage private healthcare. There\u2019s every chance that GDS will give Ramsay the growth its shareholders demand\u2026but I think the real growth will come when Ramsay finds a way into the Chinese healthcare market.<\/p>\n

Tim Dohrmann+<\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong><\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to the Ramsay Health Care Share Price? Shares in hospital operator Ramsay Health Care Ltd [ASX:RHC] rallied by nearly 4% today, defying broader market anxiety leading into reporting season. Today\u2019s move has propelled Ramsay\u2019s shares to a gain of 9% in the year to date, including dividends. Why Did This Happen […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-52651","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/52651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=52651"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/52651\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=52651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=52651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=52651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}