Federal Court Approved Healthscope’s Takeover by Brookfield’s ANZ Hospitals; CEO Quits

  • May 27, 2019 AEST
  • Team Kalkine
Federal Court Approved Healthscope’s Takeover by Brookfield’s ANZ Hospitals; CEO Quits
Healthscope Limited (ASX: HSO) is a healthcare company operating and managing a vast network of clinics, hospitals, and physicians, that provide emergency care, cancer care, pediatric services, pathology tests as well as complex surgeries. There is a total of 43 private hospitals located in Australia and pathology operations across New Zealand that together employ ~ 18,000 people, and ~ 17.5k accredited medical practitioners. On 27 May 2019, the company notified that Mr Gordon Ballantyne, MD and CEO, Healthscope has informed about his intention to leave the business, after the conclusion of the Scheme of Arrangement on 6 June this year. On 24 May 2019, Healthscope announced to the market participants that the Federal Court of Australia had approved the Scheme of Arrangement whereby which ANZ Hospitals Pty Ltd, an entity controlled by Brookfield Business Partners and its institutional partners, will acquire all the issued shares in HSO. Brookfield Business Partners, the flagship business services and industrials company of Brookfield Asset Management Inc. are engaged in acquisition, operations and management of high-end businesses Brookfield is listed on the New York as well Toronto stock exchanges. The Court orders in relation to the Scheme were expected to be lodged with the Australian Securities and Investments Commission (ASIC) on 24 May 2019, with immediate effect. The implementation of the Scheme is scheduled for Thursday, 6 June 2019. Healthscope shareholders on the share register on the scheme record date (being 7:00 PM on Thursday, 30 May 2019) would be entitled to receive the scheme cash consideration of $2.465 per share. As a result of the approval of the Scheme, Brookfield’s Takeover Offer for Healthscope (as set out in section 5.7 of Healthscope’s Transaction Booklet dated 16 April 2019) would no longer be satisfied and its Takeover Offer will lapse at the end of the Takeover Offer Period, being 7.00pm on Wednesday, 19 June 2019. Accordingly, the S&P Dow Jones Indices removed Healthscope Limited from the S&P/ASX 200. The securities of Healthscope were suspended from quotation at the close of trading on (Friday, 24 May 2019) in accordance with Listing Rule 17.2, following lodgement of the Federal Court of Australia orders with the AISC. HSO stock price settled (as on 24 May 2019) trading session, at AUD 2.460 with ~ 38.29 million shares traded in total. Meanwhile, on the same day, UBS Group AG and its related bodies corporate increased its shareholding in the company from 6.65% to 7.67% (now holds ~ 133,514,983 shares). In addition, Healthscope has also issued around 7,466,781 new fully paid ordinary shares pursuant to its Equity Incentive Plan. According to Healthscope’s Chairman Paula Dwyer, the takeover was executed in the best interest of the shareholders as unanimously agreed by the Board. Healthscope has reported fairly good performance for the first half of 2019 (1H FY2019), whereby the statutory NPAT was up 199.1% to $ 236.6%, EBITDA up 8.8%, as well as the revenues, were recorded at $ 1224.6 million (up 3% on pcp) driven by the recently completing and maturing hospital development projects. Source: FY19 Half Year Results Presentation


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