Healthscope has agreed to a $4.5 billion takeover by Canadian investment firm Brookfield, despite rival bidders suggesting they could increase their offer.
Australia’s second largest private hospital operator announced on Friday it had entered an implementation deed with Brookfield by way of a scheme of arrangement for $2.50 per share, a deal unanimously backed by the Healthscope board.
The company also noted rival suitor BGH Capital said it was willing to improve on last year’s rejected takeover bid of $2.36 per share, if it were provided access to due diligence.
Healthscope did not say whether BGH had said by how much it would have raised its bid, but confirmed its deal with Brookfield, which also owns the Dalrymple Bay Coal Terminal in Queensland and Australian real estate company Thakral Group.
The Brookfield offer, which represents a 40 per cent premium to the $1.785 price prior to its announcement, is not subject to financing or due diligence.
‘It is our view that the Brookfield Transaction is attractive and will realise significant value for our shareholders,’ Healthscope chairman Paula Dwyer said.
Healthscope shares edged another three per cent higher to $2.43 in early trade on Friday.
The company in August posted a 50 per cent drop in FY18 net profit to $75.8 million, hit by an onerous lease provision for a private hospital in Victoria, as well as an impairment charge and hospital closure costs.
Its shares were trading above $3 in 2016.