Healthscope Ltd (ASX:HSP) grants private equity consortium due diligence

Company News

The board of Healthscope Ltd (ASX:HSP) has given the green light to a private equity consortium to conduct due diligence on the company.

The Australian newspaper reports that the move is a strong sign that the $1.82 billion takeover offer is close to the mark.

Last week, Healthscope said it had received a takeover proposal from a private consortium of $5.75 per share.

The board had asked the private equity bidders to revise their earlier bid of $5.50 per share.

While the identity of the bidders has not officially been revealed, speculation is rife that it may be a joint venture between TPG Inc and Carlyle Group.

Healthscope directors have recommended shareholders take no action in relation to the indicative, non-binding proposal to acquire all of the company’s issued capital via a scheme of arrangement.

The due diligence process is expected to take several weeks.

Healthscope booked a profit of $72.29 million for the 2009 financial year.

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