Healthscope Ltd (ASX:HSO) Gets Another Takeover Offer From BGH-AustralianSuper Consortium

Companies and indices mentioned:

Healthscope Ltd (ASX: HSO) has announced it has received another takeover offer from the BGH – AustralianSuper Consortium.

Healthscope is one of the largest private hospital businesses in Australia.

The takeover offer:

Healthscope said that the takeover offer was substantially the same as the previous one made six months ago by the BGH – AustralianSuper Consortium, particularly with the same offer price of $2.36 per share. Healthscope subsequently rejected that offer.

The proposal is preliminary and a non-binding indication of interest, so there is no guarantee of success.

There are a large number of conditions including due diligence, arranging debt for acquisition, receiving investment committee approval from the Consortium’s members, all regulatory approvals and a few operational conditions.

The Consortium also requires Healthscope to not sell its property assets, to remain on track for 10% hospital profit growth in FY19 and that the balance sheet’s debt position is in line with the FY18 result.

Ellerston Capital, a Healthscope shareholder, has indicated to Healthscope it would be supportive of granting due diligence and would support a takeover offer.

The Healthscope share price has risen 18.2% in early trade to $2.11. Healthscope recently revealed a 50% decrease of profit in the FY18 result.

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Jaz Harrison

Jaz Harrison

Jaz is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.