Healthscope coming out of the shadows on BGH bid

The country’s second largest private hospital operator, Healthscope, may have been keeping the market in the dark about its views on the $4.1 billion bid for the company by BGH Capital and Australian Super but now the thinking is a decision could be announced as early as today.

It comes as Healthscope’s board was said to be meeting at the weekend.

Late last week, it was understood that the board was divided on its views about the $2.36 per share offer by the Australian buyout fund led by Ben Gray, Simon Harle and Robin Bishop.

While chairman Paula Dwyer is believed to be against the offer, others directors are thought to be in favour and no doubt the apparent schism would have been the subject of much robust debate.

Shares in Healthscope closed on Friday at $2.08, up 5c, demonstrating that doubt remains on whether the offer will proceed.

The BGH Capital consortium now has a 19.13 per cent interest in Healthscope, which includes the shares in the company held by Australian Super.

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Many expected news out from Healthscope on its stance towards the takeover approach two weeks ago, when the board held its annual general meeting, but the meeting did not deliver any further clarity.

It comes as some shareholders remain increasingly eager for the company to let the bidding consortium conduct due diligence as the landscape for private hospital operators is expected to become only more challenging in the year ahead.

Elleston Capital has just under 10 per cent of Healthscope and has indicated that it would be eager for Healthscope to allow the bidder to conduct due diligence.

The market learned of the takeover bid on October 23, which was at the same price the consortium offered earlier in the year.

But it was at a far larger premium, about 33 per cent to the price of $1.79 that the stock was trading at before the bid was made.

Earlier in the year, it was around 25 per cent from the undisturbed share price.

Deliberations are happening as Healthscope is said to have put its process to sell a 49 per cent stake in its property portfolio on the go-slow for now until there is further clarity surrounding the bid.

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Some sources say there have been up to three parties seriously interested in the $1bn-odd portfolio of property assets up for sale through UBS.

Meanwhile, parties eager to enter the competition to buy Perth Radiological Clinic have until the end of this month to submit their first round offers.

And among the line-up are expected to be private equity firms Quadrant, which owns Qscan and North Coast Radiology that services NSW and Queensland, and Permira, which owns I-Med, and others eager to capitalise on the healthcare space.

So far, the price expectations for the business have been around $400 million and adviser PwC is preparing to examine offers in the coming weeks.