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March, 201910:12 PM



Healius rejects Jangho's $2bn buyout bid

Healius rejects Jangho's $2bn buyout bid

The board of Aussie hospital operator Healius Ltd has unanimously rejected a $2.02 billion takeover offer from Jangho Hong Kong Holdings.

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By AAP 07.01.2019 09:57 AM

Australian hospital operator Healius Ltd has rejected an 'opportunistic' $2.02 billion takeover offer from its largest shareholder, Jangho Hong Kong Holdings.

Jangho, which owns nearly 16 per cent of Healius, made an indicative cash offer of $3.25 per share on January 3, which saw an immediate 12 per cent share price spike for the company formerly known as Primary Health Care.

But on Monday Healius announced the offer was opportunistic and undervalued, as well as being conditional on a number of regulatory approvals in both China and Australia.

As such, Healius chairman Rob Hubbard recommended shareholders take no action on the offer.

"The sources of funding are not apparent from the information provided by Jangho and the proposal is conditional on a number of regulatory approvals that are outside of the control of Jangho, including the approval of Chinese and Australian regulators," Healius said in a statement to the ASX.

Healius shares were last trading at $2.75, up 18 per cent from a near three-year low of $2.23 on December 31, but still well down from $3.48 a year ago.

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