China Resources is positioned to buy Kohlberg Kravis Roberts’ healthcare provider GenesisCare, with a bid for the business understood to be close to $1.7 billion.
It comes as The Australian’s BusinessNow blog first revealed today that the Chinese powerhouse has been granted preferred bidder status, with a price exceeding the initial $1.5bn expectations.
The latest development means that the other final contenders, which include Bain Capital, Ping-An and The Carlyle Group, are out of the contest, which previously would have seen competitors lodge final bids on July 25.
China Resources is advised by Macquarie Capital, which did not comment on the company’s status in the contest, while GenesisCare was being sold by Credit Suisse and UBS.
GenesisCare has been on and off the market for some time, with private equity owners at one stage considering a float of the business.
It provides high quality specialist care to patients with cancer and cardiovascular disease.
The group is also the largest provider of radiotherapy across Australia, operating 25 cancer centres in major metropolitan and regional settings, including public hospitals and schools.
Once the sale is finalised, it will mark yet another knockout price paid for an Australian asset by a Chinese bidder amid an environment of heightened sensitivity over major acquisitions by foreign buyers following the recent Federal Election.
Last year, Biostime blew other bidders out of the water in the sales process for vitamin business Swisse when they paid $1.67bn.
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