Updated December 29th, 2023 at 20:30 IST
UnitedHealth selling Brazil operations to Qualicorp founder
UnitedHealth trusts the buyer's local expertise to sustain business growth and continuity.
UnitedHealth Group has finalised the sale of its Brazilian operations to José Seripieri Filho, founder and former CEO of Qualicorp, confirming last week's speculation. The deal involved the transfer of Amil, UnitedHealth's Brazilian health insurance entity, with Seripieri's bid estimated at around 2.5 billion reais ($515.24 million).
Financial Move Impact
In a regulatory filing, UnitedHealth disclosed a $7 billion charge linked to the sale, primarily non-cash and attributed to foreign currency translation losses. This charge won't affect the company's adjusted earnings for 2024, reaffirming its projected adjusted profit of $27.50 to $28.00 per share outlined in November. The fourth-quarter 2023 results are slated for reporting on January 12.
Expressing confidence in the agreement, UnitedHealth emphasised collaborating with a buyer possessing local expertise to sustain the business's forward momentum.
UnitedHealth sells Amil
The specifics of the financial transaction were not disclosed by UnitedHealth. However, the sale encompasses Amil Insurance, Amil Integrated Care, Amil Dental, and Americas Hospitals in Brazil. Amil boasts 5.4 million beneficiaries for health and dental insurance in Brazil, a deal that has been in progress for years.
CEO Andrew Witty's decision to divest Amil, acquired for $5 billion in 2012, occurred shortly after assuming leadership in 2021. UnitedHealth faced hurdles in selling its Brazilian unit previously, citing antitrust concerns and mounting losses from individual health plans. A previous Reuters report noted the suspension of the Amil sale process last year due to these issues.
(with Reuters inputs)
Published December 29th, 2023 at 20:30 IST