Fosun expresses interest in Australia’s Healthscope – report

TPG Capital and The Carlyle Group are considering exit options for Healthscope, with a A$4 billion ($3.7 billion) IPO, a trade sale and an exit into a property trust all seen as possibilities.

Without expressing specific interest in the asset, Patrick Zhong, Fosun's head of global investment, told The Australian Financial Review that the hospital operator is "really interested" in the growth opportunities presented by China.

"Healthscope is a pretty large company, but think about if they had the same position in China [as in Australia]," he added. "The counterpart of Healthscope would be huge - 10 times larger potentially. This is the opportunity."

TPG and Carlyle bought the business for A$1.99 billion in 2011 and subsequently took it private.

First-round bids from potential buyers were due on April 24, the report said. A decision on whether to push on with a bid or move to a public offering is expected in about a month. Hospital Corporation of America (HCA) is said to be among the bidders.

Healthscope operates more than 4,500 inpatient beds in 33 hospitals, four dedicated mental health hospitals and four rehabilitation centers across Australia, as well as managing three hospitals on behalf of ACHA Group. It also owns and operates around 60 medical centers and specialist skin clinics.

Operations stretch to pathology, with services provided in Australia, New Zealand, Singapore and Malaysia, and residential and attendant care in Australia.

The company reported an operating EBITDA of A$328.1 million for the year ended June 2013, up 8.3% year-on-year, while revenues rose 4.5% to A$2.2 billion. Due to impairment charges arising from the sale of certain pathology assets, lease charges and other costs, a net loss of A$117.1 million was recorded for the period.

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• Topics
• Greater China
• Healthcare
• Exits
• Buyout
• healthcare
• Fosun Group
• TPG Capital
• The Carlyle Group
• Trade sale
• Exit
• Australia
• China