Healius may face new takeover as China’s Jangho awaits AGM

The 16 per cent Chinese shareholder of the $2bn private healthcare provider Healius is believed to be waiting until after the company’s annual meeting this month before determining whether to make a revised bid for the company or stage an exit.

China’s Jangho owns 15.93 per cent of Healius and made a $2bn takeover attempt for the company at the beginning of this year, but was rebuffed.

Since that time, the thinking has been that the Chinese group would make a revised offer.

Many are doubtful it would be successful in gaining control of the business due to likely opposition from the Foreign Investment Review Board.

However, the understanding has been that Jangho, a Chinese multinational, will attempt another takeover regardless.

Now it is believed that Jangho’s plan is to wait until after the company’s AGM on November 23.

If Healius makes negative announcements about its earnings or outlook, it would look at a funding package to attempt another bid.

Apparently Jangho still believes a takeover premium is factored into Healius’s share price and a negative announcement would send its stock lower.

It would then reassess its options in the new year, potentially selling its stake if it opts not to vie for the business.

Other private equity firms have been circling Healius, although there is not believed to be any activity right now.

Healius has 96 medical centres and day hospitals, with a total of 2541 sites, including those that also offer pathology and diagnostic imaging services.

The shares on Friday closed at $3.13.

This is below the $3.25 per share offer made by Jangho.

For the 2019 financial year, Healius saw a 6.5 per cent lift in its annual net profit to $93.2m.