Berkshire Hathaway, the largest investor in DaVita Health Care Partners Inc, has entered into an agreement to increase its shareholdings to 25% of the US operator of dialysis clinics.
In regulatory documentation filed, the companies have entered into what is known as a 'standstill' agreement to indicate the maximum percentage of shares that Buffett can own without being seen as an unsolicited takeover.
DaVita's share prices increased by US$3.84 or 3.3% to US$121.40 per share in after hours trading when the agreement was announced. Currently, Berkshire owns about 15 million DaVita shares or 14.2% as of March 4 in previous documents filed.
With the valuation, the stake would be well over US$1.76 billion at US$117.56 per share price. This gives DaVita's enterprise value at US$12.4 billion.
In separate news, DaVita reported a first quarter operating profit excluding a legal reserve of US$196.9 million or at US$1.84 per share.
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