Healthscope signs $4.5 billion takeover deal

Healthscope signs $4.5 billion takeover deal

Healthscope (ASX: HSO) and Canadian investment firm Brookfield have come to an agreement on the takeover of the Australian hospital operator to the tune of $4.5 billion.

The deal between the two comes amid claims from rival bidders that they could trump Brookfield's offer.

The agreement will see Brookfield pay $2.50 per share (a premium of 40 per cent from the share price on 22 October 2018) and is unanimously backed by Healthscope's board.

The company says it has considered all offers put to it to buyout the company, noting that rival bidder BGH Capital said it was willing to improve on its initial takeover bid of $2.36 per share.

Healthscope, the second largest private hospital operator in Australia, did not say whether BGH had said by how much it would have raised its bid.

Once the necessary checks and balances are performed Brookfield will own Healthscope's suite of hospitals as well as the Dalrymple Bay Coal terminal in Queensland and Australian real estate company Thakral Group.

Healthscope posted a 50 per cent drop in FY18 net profit to $75.8 million in August as a result of a lease provision for a private hospital in Victoria.

Shares in Healthscope are up 3.81 per cent to $2.45 at 10.55am AEDT.

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