Amil Participacoes (Amil Assistencia) to acquire further 2.24% stake in Medial Saude

Amil Participacoes S.A., through its subsidiary Amil Assistencia Medica Internacional, Ltda., has agreed to acquire 1,695,004 registered common shares representing 2.24% voting capital in Medial Saude SA from its controlling shareholders for BRL17.20 ($10.07) per share or for a total of BRL29.16 million ($17.07) million.

Amil Participacoes is a managed health care company that provides health care assistance services, while Medial Saude is a health insurance company. Both the parties are based in Brazil.

Simultaneously, Amil Participacoes through its subsidiary also agreed to acquire 100% of the shares in Medial Participacoes S.A., a privately held company, which holds 49.50% voting capital in Medial Saude. The combined transaction is valued at BRL612.51 million ($358.52 million).

Upon completion of both the transaction Amil Participacoes directly and indirectly holds 51.93% voting capital in Medial Saude. Amil Participacoes also proposes to acquire through an open offer remaining common shares in Medial Saude from its minority share holders.

Amil Participacoes will the transaction from its current cash balance.

Deal Value (US$ Million) 17.07
Deal Type                Acquisition
Sub-Category             Minority Acquisition
Deal Status              Announced: 2009-11-19

Deal Participants

Target (Company)   Medial Saude SA
Acquirer (Company) Amil Participacoes S.A.

Deal Rationale

The direct and indirect acquisition will consolidate Amil Participacoes's leadership in Brazilian supplementary health care market, especially in the state of Sao Paulo. The acquisition increases Amil Participacoes's market share in Sao Paulo from 7.9% to 15.1%, and in Brazil from 6.2% to 10.1%, with a total of 4.2 million health plan members and 986 thousand dental plan members. The combine businesses operations have potential synergies in areas such as hospital management, administrative, marketing, and commercial expenses.

% Acquisition 2.24%

Related terms: acquisition, brazil, commercial, dental, health, hospital, insurance, market, market share, marketing