Community reiterated that it expects the deal to close in the first quarter of 2014. The transaction still needs regulatory approval and is facing a second request from the Federal Trade Commission.
Hedge fund Glenview Capital Management, which led the campaign to bring in a new board and reevaluate Community's offer, also said Wednesday that it would vote its shares in favor of the merger. Glenview, HMA's largest shareholder, owns 14.5% of the company. Glenview is also Community's largest shareholder, with 9.9% of its shares as of June 30.
In addition to regulatory approval, Community still needs support from investors holding at least 70% of outstanding shares in order to complete the acquisition.
In a news release, Glenview said the offer represents “full and fair value for HMA”—reversing course on earlier statements when it called Community's bid a “floor” for further negotiation.
Community, Glenview added, “is well positioned to apply its best practices in core operational areas like physician relationships and recruiting, vendor contracting and clinical management to further stabilize and improve HMA's quality, service delivery and financial performance.”
Analysts valued Community's cash and stock deal at about $13.42 per share. The deal also includes a contingent value right that could add up to another $1 per share depending on the resolution of HMA's government investigations and other legal issues.
HMA was trading at about $13.30 per share this afternoon. The transaction is valued at $7.6 billion including the assumption of debt.
The Naples, Fla.-based chain reported a loss of $96.6 million on revenue of $1.4 billion in the third quarter. Same-facility admissions declined 6.8% while admissions adjusted for outpatient activity declined 2.9%.
The company also said it incurred costs of $102.9 million relating to replacing its board and hiring new advisers.
Follow Beth Kutscher on Twitter: @MHbkutscher
