Brookfield enters the fray for Australia’s Healthscope

Brookfield is willing to buy all outstanding shares in the company for A$2.50 apiece, which represents a 23% premium to the closing price on April 24, the last trading day prior to BGH expressing its interest, according to a filing. Working in tandem with AustralianSuper, GIC Private, Ontario Teachers’ Pension Plan (OTPP) and Canada Pension Plan Investment Board (CPPIB), BGH offered A$2.36 per share.

Healthscope’s stock jumped 15% in response to the initial announcement, closing at A$2.33 on April 26. Brookfield’s arrival on the scene prompted another spike, with the stock closing up 4.8% at A$2.58 on May 14. As of mid-morning trading on May 15, it had fallen back slightly to A$2.52.

Healthscope operates 45 hospitals across Australia and 63 pathology laboratories in New Zealand, Malaysia, Singapore and Vietnam. For the 12 months ended June 2017, the company reported A$418 million in revenue, up from A$392 million for the previous year. Net profit grew from A$324 million to A$331 million over the same period.

Ben Gray, one of the founding partners at BGH, was head of Australia at TPG Capital when the private equity firm acquired Healthscope in 2010 for A$1.99 billion in a joint deal with The Carlyle Group. The business was re-listed in 2015 at a valuation of A$3.83 billion. BGH recently closed its debut Australia and New Zealand-focused fund at the hard cap of around A$2.6 billion.

Brookfield has around $285 billion under management across real estate, private equity, infrastructure, and renewable power. It has existing exposure to Australia’s hospital industry through property contractor Multiplex and real estate and facilities management service provider BGIS.

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• Topics
• Australasia
• Buyouts
• Healthcare
• Australia
• Brookfield Asset Management
• BGH Capital