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Fresenius boss does not rule out divestment of dialysis unit

Published 22/02/2022, 06:14
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By Milla Nissi

(Reuters) - The chief executive of healthcare group Fresenius on Tuesday left the door open for a future divestment of its dialysis unit, which has struggled under a high number of deaths among patients during the pandemic, but praised the company's diversified structure.

"If somebody would offer us a very attractive price - attractive and promising for all parties involved - then it would be our duty to check and look into this offering," CEO Stephan Sturm told reporters, but added the group saw "very good" growth opportunities for all its four businesses.

Analysts have said the complex structure of the group - which has more than 300,000 employees and owns the Helios hospital chain, drugmaker Kabi and medical services unit Vamed as well as separately listed dialysis business Fresenius Medical Care (FMC) - could discourage investors.

Fresenius currently holds 32% in FMC, whose earnings are still reported under the group. Last May, the CEO had dismissed speculation that the group could cut its stake.

Sturm would also not rule out a future initial public offering for Vamed or Helios, but said an increase in the units' share capital could also be an option to finance growth opportunities.

"Fresenius Kabi has priority for the capital allocation, we are the sole owner and we will stay the sole owner," he added.

Fresenius said earlier on Tuesday it expected its earnings to keep climbing this year despite cost inflation and persisting COVID-19 effects on FMC, citing faster-than-expected progress of its savings programme.

FMC, the world's largest provider of dialysis treatments, meanwhile forecast a return to earnings growth this year after it saw a decline in pandemic-related deaths among its patients, many of whom are at a higher risk for severe COVID-19, in the last three months of 2021.

Fresenius shares were down around 6% in midday trade while FMC rose nearly 4%.

($1 = 0.8846 euros)

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