Brookfield pushes ahead with Healthscope takeover
TAKEOVER target Healthscope says its suitor Brookfield is set to push ahead with its $4.5 billion bid for the private hospital operator after completing its due diligence.
Shares in Healthscope jumped by close to 6 per cent yesterday as the healthcare group told shareholders that Brookfield had confirmed it had received all the due diligence materials it had requested from its target.
Healthscope, which is chaired by Paula Dwyer, said Brookfield had indicated that it had no reason to believe it would not be willing to proceed with its $2.85-a-share bid.
“Brookfield has also confirmed, based on its enquiries and financing discussions to date, it has no reason to believe it would not be willing and able to proceed with the proposal for the acquisition,” Healthscope said in a statement lodged with the ASX.
“The Brookfield proposal is subject to the satisfaction of certain conditions, including the completion of due diligence, Brookfield arranging committed debt financing and finalising and executing a binding implementation agreement,” Healthscope said in a statement.
The two parties have agreed to extend an exclusivity deadline to January 18 in order to work through these items.
“The parties are working together to ensure that the necessary work is completed by this date,” it said.
Melbourne-based Healthscope is also fielding a takeover offer from rival private equity group BGH Capital which is leading a bid team that includes the private hospital group’s major shareholder AustralianSuper.
In a separate statement lodged with the stock exchange yesterday, Healthscope said BGH Capital and its partners had indicated they would commence due diligence for their $4.1 billion offer. That offer is priced at $2.36 per share and was made in October.