Proceeds from the sale of most of Rhoen-Klinikum AG's (RHK.XE)
clinics should be used to cut debt and buy back shares, large
investor Eugen Muench said in an interview with the Sueddeutsche
Zeitung published Monday.
"As the anchor shareholder, I'm strictly against paying out a
special dividend," after the sale, Mr. Muench said, noting a
buyback is better for smaller shareholders, who would otherwise
have to pay a chunk of any dividend to the tax office.
In September, Rhoen-Klinikum said it would sell the bulk of its
hospitals to health care company Fresenius SE & Co KGaA
(FRE.XE) for 3.1 billion euros ($4.19 billion).
Mr. Muench said EUR800 million of the proceeds should be used to
relieve debt, EUR400 million should be earmarked for investment,
and the remaining EUR1.9 billion could be used to buy back around
50% of the company's share capital.
"Investors who want to sell could reckon with an offer of around
EUR28 per share, which would be an attractive price," Mr. Muench is
quoted as saying. Rhoen-Klinikum shares closed Friday at
EUR20.25.
He also emphasized that he and his wife intend to remain the
company's largest single shareholder.
"My wife and I won't sell, not a single share. We want to keep
the money in the company," Mr. Muench added.
-Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com
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