Speculation has been mounting that medical centre operator and private healthcare provider Healius could be about to deliver news to the market after the company’s top staff were understood to have been called to a meeting with chief executive Malcolm Parmenter yesterday.
While it is unclear what the meeting related to, the situation has some suggesting it may relate to a takeover approach, a profit downgrade or the departure of Mr Parmenter. Others believe widespread job cuts could be on the cards.
Healius is estimated to have a workforce of between 5000 and 10,000 employees and has been battling headwinds in its pathology and medical centre operations. Sources said the group had built a large team, particularly in head office.
Hitting the Healius medical centre division in the past year has been the fact the division is largely funded by government bulk-billing payments, which have not been increasing at the pace of costs such as rents and doctors’ salaries. To attract doctors, the company has had to offer a cut of the Healius profits, one analyst said.
Pathology, meanwhile, has suffered from older systems that are currently in the process of being updated, in a move likely to be costly for Healius.
Healius was contacted yesterday by The Australian but did not respond to calls.
As reported last month, a revised takeover approach by the major shareholder of Healius, China’s Jangho, is expected to be imminent. Jangho, which made a $2 billion takeover bid equating to $3.25 a share for the company in January, owns 15.93 per cent of Healius.
Healius, advised by UBS, has 96 medical centres and day hospitals, with a total of 2541 sites, including those that also offer pathology and diagnostic imaging services.
Jangho is advised by Macquarie Capital.
Doubts have emerged among some analysts as to whether Healius would be successful in securing approval from the Foreign Investment Review Board to sell the company to Jangho. However, it is understood the Chinese group has already applied to FIRB to test whether a bid would be accepted by the federal government in what is further evidence that the Chinese shareholder is eager to acquire the company.
Should it be rejected, other private equity firms are said to be lining up to make an offer, including EQT out of Sweden, TPG Capital, Kohlberg Kravis Roberts, Bain Capital and BGH Capital. Healius shares have fallen since their high this month of $3.13, closing yesterday at $2.97, with the company’s market value at $1.87bn.
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