Healthscope Provided Update On Brookfield’s Acquisition Proposal

  • Jan 21, 2019 AEDT
  • Team Kalkine
Healthscope Provided Update On Brookfield’s Acquisition Proposal

Australia’s leading private healthcare provider, Healthscope Limited (ASX: HSO) has provided an update on the previously announced proposal from Brookfield Capital Partners Ltd. The proposal is regarding the acquisition of 100% shares of Healthscope by way of a scheme of arrangement, and, if that fails, a simultaneous off-market takeover offer.

In the update, the company has informed that Brookfield is in the process of finalizing its due diligence analysis and debt commitments. Brookfield is planning to seek the necessary internal approvals required to submit a fully documented, entirely financed, binding offer by 31 January 2019. Healthscope has also informed that its engagement with Brookfield is now being conducted on a non-exclusive basis, after the expiry of the exclusivity period on Friday 18 January 2019. After providing the update, the share price of the Healthscope Limited uplifted by 0.209 percent as on 21 January 2019 (AEST 1:08 PM).

This acquisition offer was initially announced on 14 May 2018 when the company informed that it has received a proposal to acquire all the shares of Healthscope Limited through a scheme of arrangement for a cash price of $2.50 per share which was later revised to 2.55 per share and if that failed, a simultaneous off-market takeover offer of $2.42 per share. Further, Healthscope will also be entitled to pay an interim dividend of up to 3.5 cents per share due to which the total value of Takeover Offer was increased to $2.455 per share and Scheme of Arrangement to $2.585 per share.

Following that Healthscope entered into a Process Deed with Brookfield to provide exclusive access to due diligence for a limited period and as per the recent announcement Brookfield has received all the necessary due diligence material from the company.

Today the company has reminded its shareholders that a scheme of arrangement or takeover bid will only proceed if the conditions to the Brookfield Proposal are fully satisfied and if a binding implementation agreement is executed by the parties. The company has also reminded its shareholders that as of now it is not sure that the Proposal will result in a scheme of arrangement or a takeover bid.

In FY 2018, the group revenue increased by 3.7 percent to $2,340.8 million as compared to FY 2017. The Hospitals revenue increased by 4.3 percent and New Zealand Pathology revenue was down by 1.0% in FY 2018 as compared to FY 2017. The Group Operating EBIT decreased by 7.8% to $265.9 million in FY 2018 as compared to FY 2017. In FY 2019 the company is expecting its Hospital Operating EBITDA to grow by around 10 percent compared with FY 2018.

Meanwhile, in the last six months, the share price of the company increased by 9.13 percent as on 18 January 2019. HSO’s shares traded at $2.395 with a market capitalization of circa $4.16 billion as on 21 January 2019 (AEST 1:08 PM).


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK