Healthscope rejects competing takeover approaches

Australian healthcare company Healthscope has rejected both the AUD$4.35bn (USD$3.3bn) and AUD$4.1bn (USD$3.1bn) competing takeover offers from Brookfield Asset Management and BGH Capital, stating that both proposals undervalue the company.

“The Directors have carefully considered each proposal and concluded that neither proposal adequately reflects the long-term value of Healthscope, nor its underlying assets nor future potential,” said Healthscope Chairman Paula Dwyer.

See also:

• Canada’s Brookfield bids $4.35bn for Healthscope

• Santos receives revised $10.4bn takeover offer from Harbour

• Sirtex Medical receives AUD$1.9bn takeover offer from CDH Investments

The rejection of both bids is being described as a risk by analysts, with the thought being that Healthscope made the decision in the hope of getting a more generous offer.

The move comes despite Healthscope lowering its full-year earnings estimates from approximately $359mn to between $340-345mn as Australians have continued to opt more readily for public health services.

Off the back of the announcement, Healthscope shares slipped as much as 7% in trading.

Further, the company stated that it has put its Asian pathology business up for sale having received significant interest in the division from a number of different parties.