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.
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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.
