Healthscope race hots up

The race to buy Healthscope is nearing the finishing line with BGH having just one month left in its exclusive agreement with AustralianSuper.

Brookfield’s private equity arm is steaming ahead with work on its documents, due to be sent to shareholders in April ahead of a meeting likely to be held towards the end of May.

The group’s $2.465 per share offer, through a scheme of arrangement, has been recommended by the Healthscope board and the deal needs 75 per cent acceptance to go ahead.

If that fails, a $2.40 per share cash takeover offer is also on the table. The higher price values Healthscope at $4.4 billion and the bid trumps the $2.36 per share put forward by BGH.

BGH’s exclusive tie-up with AustralianSuper is due to expire on March 30 and after that date the superannuation fund is free to negotiate with Brookfield and accept a higher offer.

The expectation in the market is that AustralianSuper will roll its stock into the unlisted company Brookfield intends to establish which will own Healthscope.

In that case, AustralianSuper will retain its ownership and it has in the past said it remains keen to stay involved in Healthscope’s future.

BGH has been closely watched over the past month, to see if it might respond to beat Brookfield.

However, observers think the likelihood of that is reducing.

The private equity group has its hands full with bedding down the Navitas acquisition while casting its eye over potential future acquisitions.