By Stuart Condie

SYDNEY--The KKR & Co. Inc.-led consortium hoping to buy Ramsay Health Care Ltd. anticipates further expansion for Australia's largest private hospital operator, one of the consortium members said.

Australian pension fund HESTA on Thursday confirmed that it was part of the consortium that has made a takeover proposal that values Ramsay at 20.1 billion Australian dollars (US$14.98 billion). The proposed acquisition is an opportunity to invest in Ramsay's future growth, HESTA Chief Executive Debby Blakey said.

Ramsay on Wednesday said it had received a nonbinding, indicative proposal from a consortium of financial investors led by New York-based KKR to it for A$88.00 per share. The stock jumped 24% on Wednesday, and is up 2.0% at A$81.61 shortly after Thursday's open.

KKR on Thursday said that it aimed to finalize its nonexclusive due diligence with a view to delivering a binding offer expeditiously.

It said the consortium was confident that its offer represented compelling shareholder value.

The Paul Ramsay Foundation--a philanthropic organization set up by Ramsay's founder that held a 19% stake at March 31--said on Wednesday it was supportive of the proposal.

Ms. Blakey said that Ramsay's healthcare professionals were a key attraction to the consortium.

"They are vital to the ongoing success of Ramsay and are at the forefront of the consortium's shared vision for expansion and innovation," Ms. Blakey said.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

April 20, 2022 21:15 ET (01:15 GMT)

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