Healthscope again targeted with $4.1bn bid

Private equity firm BGH Capital and AustralianSuper have returned with another $4.11 billion bid for Healthscope, five months after the private hospitals operator rejected their takeover attempt.

Stuart Condie

23 October 2018

AAP [SYDNEY] - Private equity firm BGH Capital and AustralianSuper have returned with another $4.11 billion bid for Healthscope, five months after the private hospitals operator rejected their takeover attempt.

Healthscope says the consortium's latest proposal is worth $2.36 per share and is "substantially the same" as the one it rejected in May. Nonetheless, Healthscope on Tuesday said it will assess the proposal.

Healthscope shares were priced at $1.785 prior to Tuesday's announcement, roughly 15 per cent lower than when BGH and AustralianSuper first bid for the company in April.

By 1115 AEDT, they had jumped 36.5 cents, or 20.45 per cent, to $2.15.

Healthscope is considering its second takeover bid since May

BGH and AustralianSuper say they have the backing of Ellerston Capital, which owns 9.38 per cent of Healthscope shares.

Healthscope said it has not heard from Ellerston in relation to the proposal.

Healthscope also batted away an offer from Canada's Brookfield Asset Management in May, saying both bids undervalued the company even as it closed underperforming hospitals. It subsequently sold its Asian pathology business and reported a 50 per cent drop in full-year net profit to $75.8 million.

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AUSTRALIANSUPER

BROOKFIELD

ELLERSTON

AUTHOR

Stuart Condie
is an AAP journalist.

© 2024 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.