The Healius Ltd (ASX: HLS) share price is down 6% after rejecting the takeover offer made by China based company Jangho Group.

Healius, formerly known as Primary Health Care Limited (ASX: PRY), is a healthcare business that provides pathology, diagnostic imaging, medical centres and low-cost fertility services, such as IVF. It operates across thousands of sites Australia wide.

Takeover Offer Rejected

Jangho Group made a “highly conditional non-binding indication of interest” to takeover Healius last week.

The Board has unanimously decided against the proposal, stating that “the proposal is opportunistic and fundamentally undervalues Healius.” The Board also said that it does not support or intend to pursue the proposal any further.

The Healius Board is confident in the business strategies that it is currently undertaking, which it expects to deliver significant operational improvements. The Board believes this will be reflected as better value to shareholders than the Jangho takeover offer.

Other reasons the offer was rejected include the highly conditional and uncertain nature of the proposal, the source of funding was not made apparent by Jangho and the requirement of regulatory approvals which are outside of Jangho’s control.

Healius Chairman Rob Hubbard said, “We do not believe pursuing the proposal is in the best interests of shareholders other than Jangho and recommend shareholders take no action in respect of this development.”

So Is Healius A Buy?

It’s important to consider that the market may still be excitedly pricing in another offer, but Jangho may not make any further takeover bids for Healius. An investor may feel that a 6% drop presents good value with the closing price of $2.58 being considerably lower than the Jangho offer price of $3.25 per share.

However, the Healius share price hasn’t dropped to the level that it was before this offer was made.

If you’d prefer to stay out of the takeover hype for now, have a look at the three reliable shares in our free report below.

Three Reliable Shares To Consider

NEW INVESTING REPORT - SEP. 2019!

Finding ASX shares offering exceptional long term growth and dividends over 3% is rare. Our expert investors have just released a FREE investing report which reveals proven ASX shares.

These three companies have proven themselves to be reliable dividend + growth shares over a decade. Click here to get instant access to the investing report -- updated September 2019.

Absolutely no credit card details or payment required.



Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).