Select Medical's $3.9 Billion Privatization Deal

Select Medical will be privatized through a $3.9 billion deal involving a consortium led by its executives and Welsh, Carson, Anderson & Stowe. The venture offers $16.50 per share, an 18% premium over current market value. Stock prices rose over 7% following the announcement.

Select Medical announced on Monday its plan to go private through a $3.9 billion deal orchestrated by a consortium. The group, led by key executives including Executive Chairman Robert Ortenzio, plans to acquire the outstanding shares at $16.50 a piece in cash.

This price signifies an approximate 18% premium compared to the Pennsylvania-based company's share value since November 24, the date on which Ortenzio initially proposed the delisting.

The company's shares ended Monday at $15 each, subsequently climbing by more than 7% in after-hours trading.

(With inputs from agencies.)