Nov 19, 2009

Brazil's Amil to buy 52% of Medial for $354M

Amil Participacoes -Brazil's largest provider of supplemental health services- agreed to buy control of rival Medial Saude to expand in the country's wealthiest state and cut operating costs.
Amil is buying 51.9 percent of Medial stock in a cash deal valued at 612.5 million reais ($354 million), the companies said in a securities filing. The deal is subject to approval by Brazilian health industry regulators.
Rio de Janeiro-based Amil said in a separate statement that the acquisition of Medial will help it boost its stake of the health-insurance market in the state of Sao Paulo to 15 percent from 7.9 percent currently. Nationwide, a combination should help Amil grab a 10.1 percent market share, compared with 6.2 percent now, the company said.
Amil shareholders are offering their Medial counterparts a premium of about 17 percent above Wednesday's stock close. Despite posting losses for six straight quarters, Medial was poised to ramp up presence in Sao Paulo through the opening of its Paulista hospital by the end of 2010.

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