KKR joins battle for Healthscope
Monday, May 31st, 2010 Uncategorized.
KKR individual of two new $1.8.4bn bids for Healthscope
PRIVATE right giant KKR and a trade buyer have joined the battle to purchase Healthscope, the Australian hospital and pathology company.
KKR joins battle on account of Healthscope
KKR one of two new $1.8bn bids for Healthscope
The body said earlier today it had received two new bids that valued the fellowship at $1.84 billion, or $5.80 a share — a reward of nearly 11 per cent over its Friday closing price.
Healthscope declined to note the two new bidders, but The Australian understands one is US privy equity firm Kohlberg Kravis Roberts or KKR.
KKR is being advised by Morgan Stanley.
The other bidder is believed to be a shop-keeper buyer and is being advised by Citi.
Four of the five biggest peculiar equity firms in the world are now talking to Healthscope.
Shares of Healthscope were up 26 cents, or 5 per cent, to $5.49 by early afternoon, compared with a imbecile market overall. The S&P/ASX 200 index was into disfavor 0.3 per cent.
The company said the new bids were significant and non-binding, and the board had also granted the bidders increment to the books to conduct due diligence.
"The board considers at this time the interests of shareholders enjoin be best served by a formal process to thoroughly evaluate whether a vary in control, at a price and on terms that the council would recommend, can be secured," Healthscope said.
The company afore~ the review would take several weeks.
Healthscope said that if a regular bid doesn’t emerge, "the board believes Healthscope has a self-same attractive independent future and that the company is well positioned to be steadfast to deliver strong growth".
Last week, the hospital operator advised the Australian Securities Exchange that it had agreed to single-minded its books to a private equity consortium, believed to consist of Texas Pacific Group, The Carlyle Group and the Blackstone Group.
Healthscope had not named the members of the consortium.
The consortium revised its propose to $5.75 a share after Healthscope rejected an initial give priced at $5.50.