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R1 RCM (NASDAQ:RCM) fell 9.2% in after hours trading after New Mountain Capital said it’s no longer interested in pursuing a joint proposal with TCP-ASC.
New Mountain and TCP-ASC have engaged in discussions and mutual due diligence with respect to a potential joint acquisition of the shares of the R1 RCM (RCM) not owned by such parties or their affiliates, according to a 13/D filing on Monday. These discussions have not resulted in any agreement to date.
New Mountain Capital is open to having TowerBrook Capital Partners and Ascension Health participate in a potential transaction as equity co-investors.
New Mountain disclosed that it’s seeking a waiver of a standstill agreement to make a takeover proposal. The draft offer includes a $13.25 a share bid, down from New Mountain’s $13.75 original draft proposal in February.
In May, R1 RCM holder TCP-ASC was granted a waiver so it could join with New Mountain Capital for a takeover bid. Private-equity firm New Mountain Capital, which owns a more than 32% stake in R1, (RCM) said in April that it only wanted to pursue a takeover of the firm jointly with TCP-ASC, which is owned by TowerBrook. TowerBrook owns a 36% stake.
