Directors of hospital operator Healthscope Ltd
(ASX:HSP) have spent the weekend considering a surprise $1.74 billion takeover offer from a private equity consortium.
The company’s board reportedly met last night to discuss the indicative and non-binding proposal to acquire all of Healthscope’s issued capital via a scheme of arrangement.
The offer has come from a consortium comprising Texas Pacific Group and the Carlyle Group.
On Friday, Healthscope’s share price surged more than 17% to a two-year high of $5.28 on the news.
The consortium is offering $5.50 per share, but it is believed some investors have baulked at the bid, saying that an offer closer to $5.75 or even $6 would be fair value.
A bid of $6 would value Healthscope at just over $1.9 billion, making it one of the biggest private equity takeovers of a public company for several years.
At least 50% of shareholders need to vote in favour of the proposal for it to succeed.
The company’s board has recommended shareholders take no action in relation to the offer at this stage.
Healthscope reported a profit of $72.29 million for the 2009 financial year.
