The Australian Securities Exchange (ASX) approved Ramsay Santé’s application to trade under its foreign exempt listing category, advancing plans to transfer Ramsay Health Care Limited’s (RHC) 52.79% stake to eligible RHC shareholders. Ramsay Santé announced the decision Nov. 12, describing it as a step in the separation between the French hospital operator and its Australian parent.
RHC intends to distribute its stake through a scheme of arrangement governed by Australia’s Corporations Act 2001. RHC shareholders are scheduled to vote on the plan Nov. 24. Completion is expected Dec. 9, subject to shareholder approval, approval by the Supreme Court of New South Wales and other conditions.
Under the proposal, eligible shareholders would receive CHESS Depositary Interests (CDIs), each representing an economic interest in one Ramsay Santé share. The CDIs would carry economic rights equivalent to those of the shares. Holders could instruct the depositary nominee how to vote on their behalf, Ramsay Santé said.
Trading in the CDIs is scheduled to begin Dec. 1 on a deferred-settlement basis. Normal settlement trading is expected to start Dec. 10 if the applicable conditions are met.
RHC’s Demerger Booklet cited differences in regional businesses, plans and financing needs as reasons for the separation. It also said shareholders receiving the distribution would hold Ramsay Santé securities directly while having less influence over decisions at the French group, as noted in EconoTimes’ earlier coverage of proposed board changes.
The booklet estimated total separation costs at about A$59 million before tax: about A$27 million for RHC and A$32 million for Ramsay Santé. It outlined CDIs as a possible distribution format if the French group secured ASX listing and quotation; otherwise, shareholders would receive Ramsay Santé shares.
The Nov. 24 shareholder vote is the next scheduled decision. Court approval and the remaining conditions will also determine whether the distribution proceeds on the expected Dec. 9 date.
