Why is this ASX 200 healthcare share jumping 7% today?

This healthcare share is getting a lot of love from investors today.

| More on:
Young doctor raising arms in air with hands in fists celebrating a new development

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ramsay Health Care Ltd (ASX: RHC) share price is having a strong session on Wednesday.

In morning trade, the ASX 200 healthcare share is up 7% to $58.68.

Why is this ASX 200 healthcare share racing higher?

Investors have been bidding Ramsay Health Care shares higher today after the private hospital operator released a couple of announcements.

The first announcement reveals that the company is looking to offload its 50% owned Ramsay Sime Darby Health Care (RSD) joint venture in Asia.

The release notes that the decision was made following the receipt of significant inbound interest in RSD at values that it feels are in shareholders' interests to explore. Though, it warns that there is no certainty that a sale process will result in a completed transaction.

Ramsay also revealed that the business continues to perform strongly, with its equity accounted contribution for the 9 months to 31 March 2023 up 31.7% to $16.2 million.

What else?

A second announcement reveals that the ASX 200 healthcare share has refinanced its bank loan facilities.

According to the release, the company has secured $1.5 billion in new committed revolving bank loan facilities with two of its key relationship banks.

The facilities, which will mature in FY 2026, are part of Ramsay Health Care's ongoing bank loan refinancing activities. They will be used to repay facilities maturing in FY 2025.

Management also advised that it will continue to seek to diversify the source and tenor of its borrowings over time.

While today's gain is of course good news for shareholders, it does not change much for them on a 12-month basis. Since this time last year, the ASX 200 healthcare share has lost almost 21% of its value.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Which ASX 200 healthcare share will pay the best dividend yield in 2025?

Earnings season is underway and dividend announcements are on investors' minds.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Dividend Investing

Looking to bag the record high ResMed dividend? You better hurry!

Unlike the majority of ASX 200 income stocks, ResMed pays dividends every quarter.

Read more »

Two lab workers fist pump each other.
Healthcare Shares

3 reasons to buy CSL shares today

Two investment experts expect a big turnaround for CSL shares in 2025.

Read more »

Business people discussing project on digital tablet.
Healthcare Shares

Down 4%, is the ResMed share price in the buy zone?

Do analysts think investors should be buying the dip? Let's see what they are saying.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Healthcare Shares

Guess which ASX 100 share is sinking 8% because of Trump's tariffs

Donald Trump has dealt this company a big blow. What's happening?

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

Up 1,090% in a year, why is the Mesoblast share price leaping higher again on Friday?

Mesoblast shares have surged more than 1,000% over the last 12 months.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Earnings Results

ResMed shares rise on strong Q2 result

Let's see how this sleep treatment company performed during the second quarter.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Healthcare Shares

$1,000 invested in Mesoblast shares at the start of 2024 is now worth…

Did this biotech company deliver the goods for investors? Let's see what a $1,000 investment would be worth.

Read more »