R1 RCM (NASDAQ:RCM) experienced a remarkable 10% surge in after-hours trading as news emerged that TCP-ASC is in the final stages of crafting a proposal to acquire all outstanding shares of the company currently not under its ownership.

Reportedly, the proposed offer outshines the previously mentioned $13.25 share price, as outlined in the recent standstill waiver disclosed by New Mountain Capital earlier this week. A 13D filing on Friday hinted at these developments while revealing the conclusion of talks between TCP-ASC and CoyCo regarding a joint transaction.

The unfolding situation followed a dip of 13% in R1 RCM’s stock value this past Tuesday, sparked by New Mountain Capital’s decision to withdraw from negotiations with TCP-ASC vis-à-vis a collaborative bid. Joseph Flanagan, a prominent board member and former CEO of R1 RCM (RCM), is reportedly engaged in dialogues with TCP-ASC concerning the potential of serving in a key executive role within R1-RCM post a successful acquisition.

Earlier this week, New Mountain Capital signaled its intent to acquire R1 RCM by seeking an exemption from the existing standstill pact. The proposed bid, highlighted in the draft offer, showed a price of $13.25 per share, a reduction from the original $13.75 bid presented by New Mountain in February.

In a sequence of events in May, TCP-ASC, an existing holder of R1 RCM, secured a waiver enabling its collaboration with New Mountain Capital for a takeover proposition. New Mountain Capital, a private equity entity controlling over 32% stake in R1 RCM, initially expressed a desire in April to solely consider a joint acquisition with TCP-ASC, a business entity affiliated with TowerBrook. TowerBrook currently commands a substantial 36% stake in the company.