The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), or WHSP, share price is on watch as it may be on the hunt for opportunities in the aged care sector.
WHSP looking for aged care opportunities?
According to reporting by the Australian Financial Review, the old investment house is looking at opportunities in the aged care space.
The CEO of WHSP also said that agriculture (horticulture) and financial services are two other spaces that it’s looking to find opportunities.
It was also reported that WHSP plans to invest in asset classes that investors cannot normally get direct exposure, including unlisted private companies, direct credit, as well as international equities.
WHSP may soon have a large chest of capital to spend on investment opportunities thanks to its share-funded deal to acquire Milton Corporation Limited
(ASX: MLT) and also the potential sale of the long-held stake of Australian Pharmaceutical Industries Ltd
(ASX: API).
The AFR reported that Mr Barlow said:
“Health and the ageing population is definitely one of those things we’ve done a lot of work on. I’m sure that we can build out some very significant investments, and given the ageing population this is one area, and we really like what Provectus is doing.”
The newspaper also reported that the Sage By Moran $80 million project has been approved for development, which is a partnership between WHSP and the high-end aged care operator, Provectus Care.
The partners are looking for other long-term opportunities.
The article went on to point out that there is currently a bidding war going on for Japara Healthcare Ltd (ASX: JHC) by two not-for-profits. Perhaps that suggests that WHSP is interested in Japara, after making a previous run at Regis Healthcare Ltd
(ASX: REG) last year?
Mr Barlow commented on the tax advantages not-for-profits have:
“It is a significant problem but nevertheless they are constrained on how big they can get. As much as they have a competitive advantage, they don’t have the scale advantage we can bring to the industry. By investing in the right systems, people and assets we can overcome those competitive disadvantages in other ways.”
Summary thoughts on WHSP
WHSP is one of my favourite businesses on the ASX. It’s a really diversified business, with long-term focused management and a really good dividend record.
I’d like to get a better understanding of the underlying (portfolio) value of WHSP before buying a lot more shares at the current price, after a strong run over the last year.
But I think it’s potentially one of the most reliable ASX dividend shares around.
