Australia’s second biggest private hospital operator, Healthscope, Tuesday announced it board had approved the proposed investment takeover from the Carlyle Group, based in the US. According to the announcement, the board agreed to the A$2 billion takeover bid from the American private equity Group undertaken in conjunction with TPG Capital.

The two had launched their bid for the Australian firm and as well reported having won the purchase beating their rivals in the bid. Carlyle Group and TPG had proposed a takeover offer pegged at A$6.26 per share for Healthscope and according to Healthscope, based in Melbourne, the offer reflects a 39% premium over it’s a$4.50 trading share price as of 13^th May, the day prior to the announcement of the proposal from the Carlyle Group and TPG Capital.

When tabulated with regard to Healthscope’s current 317 million shares outstanding, the investment price tag Carlyle Group will pay for the firm values the deal at about A$2.7 billion. However, Healthscope was quick to add that the offer price tag will be cut down in the future through the issue of any dividends it will make to its shareholders before the deal can finally be sealed. Linda Nicholls, Healthscope’s chairwoman said that while the company’s board strongly believes in the company’s current positioning with regard to delivering robust growth for its shareholders well into the future, the company’s board took into consideration the fact that the relative assurance the cash offer has delivered at its considerable premium is in the best interests of Healthscope’s shareholders.

However, even with the board’s approval, Healthscope still has to get further approval from the court and Australian competition watchdog’s regulatory affirmation before it can be concluded. Healthscope, as one of Australia’s biggest hospital operators runs a number of private hospitals and owns pathology facilities around the world. With the announcement of the Carlyle Group and TPG Capital’s winning of the bid, the curtain has fallen on one of Australia’s major firm’s that had attracted a number of various offers. 

Healthscope is a leading national and international provider of private health care including 44 private hospitals, and management of three hospitals for the Adelaide Health Care Alliance Group (ACHA) in South Australia with internationally renowned pathology businesses including Healthscope Pathology with 63 laboratories in Australia as well as laboratories in New Zealand, Singapore and Malaysia and DCdeL Laboratories in NSW.  In addition, Healthscope owns and operates 50 Medical Centres and Skin Clinics and is currently expanding into Diagnostic Imaging Services.

20 July 2010.