ROWAYTON, Conn. - Coliseum Capital Management, LLC, a major shareholder of R1 RCM Inc . (NASDAQ: NASDAQ:RCM), has publicly addressed the company's Board of Directors, expressing its belief that the acquisition offer from New Mountain Capital, L.L.C. undervalues the healthcare revenue cycle management provider. In a letter dated today, Coliseum Capital, which owns over 10 million shares of R1 RCM, making it one of the five largest shareholders, urged the board to either negotiate a significantly higher offer or continue operating independently.
The investment firm reviewed the amended 13D filed by New Mountain Capital proposing to purchase all outstanding shares of R1 RCM for $13.75 per share in cash. Coliseum Capital's letter highlighted its confidence in R1 RCM's current strategy and growth potential, commending the management team led by Lee Rivas and Jennifer Williams for their efforts in driving the company forward.
Coliseum Capital's stance is that accepting the offer at or near the proposed price would not serve the best interests of the shareholders when considering the company's promising business prospects. The letter encouraged the Board of Directors to either demand a higher price or reject the offer and maintain R1 RCM's status as a publicly-traded company, with the belief that this would ultimately lead to greater shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.