HMA board hires financial advisers to review sale

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Hospital operator Health Management Associates Inc., parent company of Knoxville-based Tennova Healthcare, said Wednesday that its new board has hired independent financial advisers to evaluate the proposed sale of HMA.
Franklin, Tenn.-based Community Health Systems announced in July that it would buy HMA for $3.9 billion in stock and cash, plus assumption of debt.
The acquisition is expected to close by the end of the first quarter next year.
Hired to take a look at the offer are financial advisers, Lazard Frères & Co. LLC and UBS Securities LLC.
Naples, Fla,.-based HMA also said it has retained legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP and financial operating and compliance consultant Alvarez & Marsal Healthcare Industry Group LLC.
HMA also said in a news release that CHS “consented to the engagement” of the financial advisers.
Last month, HMA’s largest shareholder, Glenview Capital Management, spearheaded a shareholder vote to replace the HMA board with a slate of independent nominees tasked with getting a better price.
Glenview, a private investment management firm with more than $6 billion of assets under management, owns about 15 percent of HMA’s shares.
Brian Tanquilut, an analyst at Jefferies & Co. in Nashville, told Bloomberg News, investors should view the hiring of financial advisers to look at the deal should as good news.
“From an investor perspective, having a time line actually helps in evaluating the risk of where the stock will trade.”
Click here for the Bloomberg report.