More action in healthcare yesterday with Sigma granting its South African suitor, Aspen, due diligence rights and Healthscope revealing that it’s now the most popular girl at the dance, with two more takeover offers.
Healthscope, which is our second largest private hospital operator, said both new bids were at a price of $5.80 a share or higher than the existing offer of $5.75 a share.
The offer at a 10.9% premium to Friday’s closing share price values the firm at $1.84 billion.
Healthscope in a statement advised shareholders to take no action and added it would take several weeks to evaluate the offer.
Healthscope shares jumped 5% or 26c yesterday to $5.49.
Last week private equity firm Blackstone Group was named as joining TPG and Carlyle in their bid at $5.75 a share.
"The company has, since close of trade on Friday, May 28, received two additional indicative and non-binding proposals to acquire all of the issued capital of Healthscope for cash consideration by scheme of arrangement,’’ Healthscope said in yesterday’s statement.
”Both of these proposals were at a price of $5.80 per share.’’
Healthscope said it’s allowing the new bidders to review its financial statements and records.
It is not known if the new offer or offers come from US buyout group, Kohlberg Kravis Roberts & Co, which has been reported as readying an offer.
Healthscope shares are up more than 20% since first announcing a takeover approach was made on May 14.
The company hasn’t given the names of any of its bidders.
Healthscope owns or operates 43 hospitals in Australia, including the Prince of Wales Private Hospital in Sydney’s eastern suburbs and Melbourne Private Hospital in the heart of the city.
It also runs the Gribbles pathology chain in Australia, New Zealand, Malaysia, Singapore and Mauritius.
And Sigma Pharmaceuticals said yesterday it had entered a confidentiality agreement with Aspen Pharmacare Holdings, which has made a $707 million offer to buy the ailing local group.
Under the agreement, Aspen will be allowed to conduct due diligence, while Sigma has also agreed not to solicit rival offers for the next four weeks of limited exclusivity.
The company said it continued to recommend that shareholders take no action on Aspen’s bid.
Sigma said the due diligence process might result in a formal proposal from Aspen.
Sigma announced on May 21 that it had received a non-binding, indicative and conditional proposal for all of its shares at 60 cents each, which would value Sigma at about $707 million.
Sigma confirmed on May 24 that the party attempting to buy the company was Aspen.
Sigma shares closed 53c, up 7%, or 3.5c.
