Healthscope (ASX:HSO) has agreed to sell its Asian pathology operations in Singapore, Malaysia and Vietnam for $279 million to private equity firm TPG Capital Asia.
The private healthcare provider expects to book a gain on sale of around $165 million. Proceeds of the sale will be used to pay down debt and fund Healthscope’s expansion pipeline.
The Asian pathology operations contributed earnings (EBITDA) of $18.2 million in Financial Year 17 and $9.6 million in the first half of 2018.
Healthscope MD and CEO, Gordon Ballantyne says the outcome realises significant value for Healthscope shareholders following a tough and competitive sales process.
Shares in Healthscope (ASX:HSO) are trading down 0.67 per cent to $2.21.