Healthscope Provides Update on Acquisition Proposals Property Strategic Review

Healthscope Limited announced that it has decided not to provide due diligence access to either the BGH – AustralianSuper Consortium or Brookfield. Healthscope also announced it will undertake a strategic review of its hospital property portfolio.

The Healthscope Board, together with its advisers, has carefully reviewed both proposals. Based on the information which is currently available to the Company, the Board believes that the proposals undervalue Healthscope having regard to various matters including the expected:

  • improvement in operating performance in FY19 and beyond;
  • returns from Healthscope’s brownfield capital investment program;
  • contribution from Healthscope’s investment in the Northern Beaches Hospital; and
  • value of Healthscope’s underlying property portfolio.

Each proposal would have required extensive due diligence at a critical time prior to the opening of the Northern Beaches Hospital. Further, each proposal was subject to numerous conditions and sought to impose various restrictions on Healthscope and on each other.

Consequently, the Board believes that it is not in the best interests of Healthscope shareholders to provide due diligence access to either party.

The Board is committed to maximising value for shareholders and has decided to commence a strategic review of Healthscope’s substantial freehold property portfolio. Healthscope owns 29 freehold properties that are expected to have a market value well in excess of their current book value of approximately $1.3 billion. The strategic review will explore the merits of a sale and leaseback transaction with a view to unlocking value for Healthscope shareholders in the near term.


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