Healius gets $2.1bn takeover bid

The takeover proposal is at $3.40 cash a share, valuing the company at $2.1bn, and is subject to a number of conditions including six weeks of due diligence.

Healius said late on Tuesday it had received an unsolicited, non-binding indicative offer from a wholly owned subsidiary of Partners Group to acquire all of the shares in the company by way of a Scheme of Arrangement.

The proposal is at $3.40 cash a share, valuing the company at $2.1bn, and is subject to a number of conditions including six weeks of due diligence.

In a statement to the ASX, the board of Healius said it would assess the proposal and keep the market informed in accordance with its continuous disclosure obligations.

“The board has not yet formed a view on whether the price offered under the proposal represents an appropriate value for Healius in the context of a control transaction or in light of the other strategic initiatives currently being explored by Healius,” it said in the statement.

“Healius shareholders do not need to take any action in relation to the proposal at this stage and there is no certainty that the proposal will result in a transaction.”

Earlier on Tuesday, Data Room revealed Partners Group has secured the right to acquire 16 per cent of Healius, buying the option over shares held by China’s Jangho, prompting speculation that the company was now set to be subject to a takeover.

Shares were secured at $3.30 each in a transaction by JPMorgan and E&P Corporate Advisory that valued the stake at about $326m.

An announcement on the trade was announced to the ASX after the market closed on Tuesday afternoon and the company was expected to launch a $2bn takeover bid for the company.

It is understood that the shares are being bought for $3.30 each but Partners must pay an additional 30c a share to exercise the option to secure the stake.

It comes after The Australian’s DataRoom revealed on February 11 that Jangho was selling its interest in the company and had abandoned plans for a takeover of the Australian-listed healthcare provider.

Last year, Jangho launched a $2bn takeover bid for Healius, which was rebuffed by the company.

It explored the possibility of making a second attempt at an acquisition, but challenges began presenting themselves from a Foreign Investment Review Board perspective, as first flagged by DataRoom.

The Chinese shareholder started cooling on the idea of a bid late last year and recently opted to walk away.

Healius has been a highly attractive target for private equity that is cashed up and eager to capitalise on the growing need for healthcare with an ageing demographic.

However, Jangho’s holding in Healius has always been seen as the stumbling block for any other private equity firm or suitor coming forward to buy the company previously known as Primary Healthcare.

Last year, sources said any party wanting to embark on a Healius takeover would wait until shares were below $3.

They rallied above $3 late last year, but on Tuesday closed at $2.76.

Partners Group has $US94bn in assets under management and is based in Switzerland, with investments already in the healthcare sector.

As flagged by DataRoom last year, various private equity firms have been eager to embark on an acquisition of Healius, with Partners Group then tipped as a possible suitor.

Other parties named as possible suitors include PAG Asia, Henry Bateman’s interests, Apollo, EQT, BGH Capital, TPG Capital, Bain Capital and Kohlberg Kravis Roberts.

Groups were understood to have considered a joint bid for the company.

In the past, Jangho’s adviser has been Macquarie Capital, while Healius counts investment bank UBS as its adviser.

Healius is being advised by UBS and King & Wood Mallesons is their legal adviser.