Boston, MA, 11/14/2013 (wallstreetpr) – The associates of Health Management Associates Inc (NYSE:HMA) announced that the new board of directors agree and support the sale of the hospital company to the competitor known as Community Health Systems.
The board of directors of Health Management Associates Inc recommended that share holders vote for the sale saying that this provides maximum value for the share holders making the strategies that would help in making both the companies stronger and powerful.
One of the largest share holders of Health Management Associates Inc, Glenview Capital Management said that they would be voting their stock in the favor of the sale being done by the company.
The competitor of Health Management Associates Inc, Community Health Systems Inc said that they are highly pleased with the decision.
This deal which would be done between Community Health Systems and Health Management Associates Inc is valued at around $3.9 billion or $13.78 per share. Moreover, according to the associates of the company, the entire cash and stock transactions is valued at worth $7.6 billion which also includes the debts of Health Management Associates Inc.
Talking about the recent trading session of the company, the stock of shares of Health Management Associates Inc gained 72 cents or 5.8%. Also the shares belonging to Community Health System rose by 1.7% or $43.06.
At the end of the third quarter of Community Health Systems was the owner of 135 hospitals spread in 29 states. The hospitals belonging to Community Health Systems are located in mid sized markets and non urban markets. The Health Management Associates Inc which is based in Naples runs around 71 hospitals in 15 states which are mostly located in South east and Texas.
Community Health Systems made an offer to buy Health Management Associates Inc in the month of June.
