Analysts at Jefferies said in a note that an R1 RCM (NASDAQ:) takeover is now likely in the near term after a filing revealed the company granted waivers to TowerBrook and New Mountain of certain restrictions in the Investment Rights Agreement.
“A 13D was filed today AMC which indicates that New Mountain and TowerBrook have received waivers for the purpose of working together to acquire all outstanding shares of RCM,” explained analysts at Jefferies.
“New Mountain expects to engage in ongoing discussions with TowerBrook, existing shareholders, and potential financing sources. No agreement has been reached at this time, although it was noted that New Mountain was previously willing to acquire the company at $13.75,” they added.
Analysts believe the independent board of RCM probably ran a process and did not get a materially better offer.
As a result, by allowing their majority shareholders (TowerBrook and New Mountain) to speak and own additional stock, they are trying to solicit the best offer possible.
The best guess is that a near-term transaction is likely in the $13.75 to $15 range. The firm reiterated a Buy rating on RCM.
