RIO DE JANEIRO, BRAZIL – Brazilian insurer and hospital operator Hapvida Participações e Investimentos SA and competitor Notre Dame Intermédica Participações SA disclosed the share conversion terms of a previously announced amalgamation that would create the country’s largest hospital chain.
The companies said that Intermedica shares will be merged into Hapvida, with one Intermedica share being swapped for 5.249 Hapvida shares and an additional R$6.45, according to a pair of securities filings made on Saturday night, February 27th.
Hapvida shareholders will own 53.6% of the combined company after the deal.
The chief executives of both companies will be active of the board of directors of the combined company, the securities filings said.
The transaction costs will likely come to R$116 million (US$20.7 million), the companies said.
In January, Hapvida offered R$49 billion (US$8.75 billion) to purchase Intermedica. The combined company will have 8.4 million healthcare clients and 70 hospital spread throughout the country.
The final deal is still subject to the approval of the companies’ shareholders, as well as health and antitrust authorities in Brazil.