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.
