Paul Ramsay Foundation sells shares in Ramsay Health Care in $1.36bn block trade

The Paul Ramsay Foundation inherited a major interest in Ramsay Health Care following the death of its founder Paul Ramsay in 2014.

The Paul Ramsay Foundation has sold shares in Ramsay Health Care at $61.80 each in what is the largest block trade since Shell sold its shares in Woodside Petroleum in 2017.

The trade unfolded over Monday night with shares sold through a book build underwritten at a $61.80 floor price.

Sources on Monday night were betting the deal would price at the bottom of the range due to the sheer size of the trade.

Working on the $1.36 billion selldown through Monday evening was JPMorgan and UBS, with bids being called for at 20c increments and a ceiling price of $63.80.

Share were offloaded through a book build unfolding after the market closed Monday and the trade was underwritten at $61.80 per share by the banks.

It leaves the Paul Ramsay Foundation with a holding in the country’s second largest private hospital operator of just over 20 per cent after divesting the 10.9 per cent interest or 22 million shares.

Shares in Ramsay closed at $65.20 on Monday.

The Paul Ramsay Foundation inherited a major interest in Ramsay Health Care following the death of its founder Paul Ramsay in 2014.

At that time, the foundation, which supports charitable causes in Australia, aiming to identify the root causes of disadvantage, held about 36 per cent of the company.

However, it has already sold down some of its interest, in 2014, divesting about 2.2 per cent of its shares, worth $224.4m.

The block trade is the largest since Shell sold out of Woodside Petroleum in 2017, selling a $3.5 billion interest in the Australian listed energy group equating to 13.28 per cent of the business.

Ramsay’s shares have risen from about $55 almost a year ago.

For the year to June, the company posted a 2 per cent lift in its net profit to $590.9 million.