Homepage
PR Newswire
05-04-2014, 09:18 AM
IHH 'drops plan' to buy Healthscope of Australia
Prospective bidder loses interest after subject's owners lean towards IPO
Published on Apr 05, 2014
The Mount Elizabeth Novena hospital is owned by Parkway Holdings, which was bought by IHH in 2010. IHH runs 33 hospitals as well as medical centres, clinics and other health-care businesses across nine countries. -- PHOTO: IHH HEALTHCARE
MELBOURNE - IHH Healthcare, Asia's biggest hospital operator, dropped plans to bid as much as A$5 billion (S$5.8 billion) for Australian health-care provider Healthscope, said people familiar with the matter.
IHH's interest waned as Healthscope's owners, TPG Capital and Carlyle Group, veered towards an initial public offering (IPO) that may raise as much as A$4 billion, said the people, asking not to be identified as the details are private.
The buyout firms are in talks with sovereign wealth funds and other buyers to act as so-called cornerstone investors in the share sale, which may take place as early as July, one of the people said.
TPG and Carlyle are studying sale options for Australia's second-largest private hospital operator, including an IPO or trade sale and splitting off the company's property assets to sell them separately, people familiar with the matter said last month.
The owners have not made a final decision yet on whether to pursue an IPO and could still weigh offers for the business, a source said yesterday.
A spokesman for TPG and Carlyle declined to comment, while IHH said in an e-mailed statement it does not comment on specific transactions.
IHH, 44 per cent owned by Malaysia's sovereign wealth fund Khazanah Nasional, has been expanding through acquisitions to benefit from rising demand for medical services in emerging markets.
It bought Singapore's Parkway Holdings in 2010 and completed the purchase of a 60 per cent stake in Acibadem Saglik Hizmetleri & Ticaret, Turkey's largest hospital group, in 2012, according to data compiled by Bloomberg.
IHH runs 33 hospitals as well as medical centres, clinics and other health-care businesses across nine countries including Vietnam, India and China, its website shows.
The company's shares have rallied 35 per cent since their July 2012 IPO in Kuala Lumpur.
Healthscope operates 44 hospitals including the Prince of Wales Private Hospital in Sydney and Melbourne Private Hospital, according to its website. It also runs pathology centres in Australia, New Zealand, Malaysia and Singapore.
The two US private equity firms bought Healthscope for A$2.7 billion in 2010, beating global investment firm KKR to what was then Australia's biggest buyout in eight years. Ramsay Health Care is the country's largest private hospital operator.
BLOOMBERG
Prospective bidder loses interest after subject's owners lean towards IPO
Published on Apr 05, 2014
The Mount Elizabeth Novena hospital is owned by Parkway Holdings, which was bought by IHH in 2010. IHH runs 33 hospitals as well as medical centres, clinics and other health-care businesses across nine countries. -- PHOTO: IHH HEALTHCARE
MELBOURNE - IHH Healthcare, Asia's biggest hospital operator, dropped plans to bid as much as A$5 billion (S$5.8 billion) for Australian health-care provider Healthscope, said people familiar with the matter.
IHH's interest waned as Healthscope's owners, TPG Capital and Carlyle Group, veered towards an initial public offering (IPO) that may raise as much as A$4 billion, said the people, asking not to be identified as the details are private.
The buyout firms are in talks with sovereign wealth funds and other buyers to act as so-called cornerstone investors in the share sale, which may take place as early as July, one of the people said.
TPG and Carlyle are studying sale options for Australia's second-largest private hospital operator, including an IPO or trade sale and splitting off the company's property assets to sell them separately, people familiar with the matter said last month.
The owners have not made a final decision yet on whether to pursue an IPO and could still weigh offers for the business, a source said yesterday.
A spokesman for TPG and Carlyle declined to comment, while IHH said in an e-mailed statement it does not comment on specific transactions.
IHH, 44 per cent owned by Malaysia's sovereign wealth fund Khazanah Nasional, has been expanding through acquisitions to benefit from rising demand for medical services in emerging markets.
It bought Singapore's Parkway Holdings in 2010 and completed the purchase of a 60 per cent stake in Acibadem Saglik Hizmetleri & Ticaret, Turkey's largest hospital group, in 2012, according to data compiled by Bloomberg.
IHH runs 33 hospitals as well as medical centres, clinics and other health-care businesses across nine countries including Vietnam, India and China, its website shows.
The company's shares have rallied 35 per cent since their July 2012 IPO in Kuala Lumpur.
Healthscope operates 44 hospitals including the Prince of Wales Private Hospital in Sydney and Melbourne Private Hospital, according to its website. It also runs pathology centres in Australia, New Zealand, Malaysia and Singapore.
The two US private equity firms bought Healthscope for A$2.7 billion in 2010, beating global investment firm KKR to what was then Australia's biggest buyout in eight years. Ramsay Health Care is the country's largest private hospital operator.
BLOOMBERG