Brentwood, Tenn.-based Quorum Health has received a nonbinding proposal letter from KKR & Co., a New York City-based private equity firm, according to a Securities and Exchange Commission filing.
In a Dec. 2 letter to Quorum's board of directors, KKR said it has been in discussions with Quorum's management team about a potential transaction.
"As a result of those discussions and the comprehensive review of the information provided to date, KKR believes that the value-maximizing path for the company, including the enterprise as a whole, along with all stakeholders, is through a recapitalization of the company," states the letter.
KKR's letter mentions several terms of the potential transaction, including the possibility of taking Quorum private, "partly through a buy-out of the public shares held by minority holders at a price of $1.00 per share."
Quorum, the 24-hospital spinoff of Franklin, Tenn.-based Community Health Systems, acknowledged receipt of the proposal in a Dec. 2 press release.
"The company's board of directors will, together with its financial and legal advisors, carefully consider this letter as part of its ongoing engagement with its debt and equity holders," Quorum said in the release.
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