Healthscope Ltd (ASX: HSO) shares are up 3% with the company confirming it is going ahead with the takeover with Brookfield.
Healthscope is Australia’s second largest private hospital operator and has been the focus of a bidding war between Brookfield and a consortium of BGH & AustralianSuper.
Why Healthscope shares are up 3%
This morning, the healthcare company announced it is entered into a ‘scheme of arrangement’ with Brookfield as well as a simultaneous off-market takeover offer.
Under the scheme of arrangement, Healthscope shareholders will be entitled to a total value of $2.50 per share, including a 3.5 cents per share interim dividend.
Healthscope Chairman Paula Dwyer said: “Having fully considered a range of alternatives, the Board unanimously concluded that the Brookfield Transaction is in the best interests of our shareholders.”
Healthscope also gave a trading update showing that in the first half of FY19 revenue increased by 3% to $1.22 billion and operating EBITDA grew by 7.7% to $198.1 million (click here to learn what EBITDA means).
Should you buy Healthscope shares?
Healthscope shares are now trading at around $2.45, so there appears to be very limited upside for today’s buyers unless the BGH – AustralianSuper consortium offers a higher bid.
Investors like Luke Cummings from Harvest Lane Asset Management might be interest in the difference in share price, but brokerage costs alone may make the difference to $2.50 too little to consider.
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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).