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Healthscope again targeted with $4.1bn bid

BGH Capital and AustralianSuper have returned with another bid for Healthscope, five months after the private hospital operator rejected their takeover attempt.

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.

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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.


1 min read

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Source: AAP


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