HMA acquisition clears another hurdle

NAPLES — The Securities and Exchange Commission gave the green light for shareholders to vote on the $7.6 billion acquisition of Health Management Associates by Community Health Systems.

“We are pleased that the SEC has completed its review, and we can continue to move toward the successful completion of our acquisition of HMA,” says Wayne Smith, chairman, president and CEO of Tennessee-based Community Health, in a statement.

Community Health owns 135 hospitals and HMA has 71 hospitals. “We continue to believe this transaction represents full and fair value for HMA stockholders, while positioning CHS for long-term growth that will generate incremental stockholder value and benefit local communities and patients around the country,” Smith says in the statement.

The transaction is scheduled to close in the first quarter and must be approved by HMA stockholders holding 70% of HMA's outstanding shares, among other conditions. Under the terms of the deal, Community Health will acquire each share of HMA for $10.50 in cash, 0.06942 of a share of Community Health common stock and a contingent payment of up to $1 per share based on certain performance measures.

On Nov. 13, HMA announced its board unanimously recommended that HMA stockholders vote for the acquisition. Its largest shareholder, Glenview Capital Management, which owns about 14.3% of the shares of HMA, also says it plans to vote for the deal.