Insurer Fidelidade receives indicative offers for Luz Saúde in April
Information memos were sent to potential investors this week, according to Mergermarket. ICG and Ardian will be analysing. ECO understands that US-based Advent has also received an invitation.
Portuguese insurer Fidelidade expects to receive non-binding offers to sell a minority stake in Luz Saúde at the end of April, according to information released on Thursday by Mergermarket.
The information memos — which in mergers and acquisitions processes serve to give potential buyers essential and elaborate information about the company up for sale — were sent this week, sources familiar with the matter told the M&A platform.
Fidelidade — which does not comment on this information — is willing to sell a 40% stake, but it could be a few percentage points higher, seeking a valuation of more than one billion euros for the hospital group.
The insurance company had already sent letters of invitation to more than a dozen potential investors, including international private equity firms such as KKR, Macquarie Group or PureHealth Holding of Abu Dhabi. The Brazilians of Rede D’Or São Luiz SA, the British of Intermediate Capital Group (ICG) or the French of Ardian are also analysing this asset, according to Bloomberg and Mergermarket. ECO understands that the US company Advent International has also received the information memorandum.
The financial agency Bloomberg reported in February that Fidelidade had hired the investment bank Natixis to start contacts with possible interested parties to buy a minority position in the Luz Saúde group.
Luz Saúde contributes with 38 million to the Fidelidade group
Luz Saúde contributed with a positive net profit of 37.7 million euros to the Fidelidade group last year, representing a year-on-year increase of 21%. In 2024, Luz Saúde’s revenues rose by 10% to 730 million euros.
In its most recent annual financial report, the insurance company mentions the hospital operation’s “unrivalled revenue” and recalls the failed attempt to take the healthcare group public last year: “Although the intention to sell a minority position in Luz Saúde by IPO was announced, the operation was eventually suspended, as the general market conditions on the planned date reflected the uncertainty generated by the escalation of the conflict in the Middle East, and therefore prevented a correct valuation of the asset.”
In an interview with ECO’s podcast “À Prova de Futuro”, Luz Saúde’s CEO said that the company was still interested in going public, but that it could go through other alternatives, such as the direct sale of a stake to investors.
Asked whether going public might not necessarily involve selling the capital on the stock exchange, Isabel Vaz replied: “It might not, although we, the management team, like it. The IPO [initial public offering] process was a bit funny, because when we did the intention to float and suddenly Iran puts 300 missiles into Israel that week. We really have an aim…”.
