Healthscope Share Price Skyrockets 11% upon Takeover News

Healthscope Ltd [ASX:HSO] has enjoyed a steady incline this morning, after the news rolled in of a new takeover approach.

The medical company, which operates private hospitals, medical centres and international pathology services, has received a proposal from Brookfield Capital Partners and its affiliates. They will be acquiring 100% of Healthscope in an off-market takeover offer.

The Healthscope share price hiked up 11% at $2.31 in morning trade.

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What’s the story?

Brookfield Capital Partners has made an offer representing a total value of $2.455 per share, and a simultaneous scheme of arrangement representing total value of $2.585 per share.

Under that scheme, shareholders potentially have the option to receive all cash or some of it in shares in another unlisted company controlled by Brookfield that would own 100% of Healthscope.

This has widely been considered an attractive proposal for shareholders, due to its certainty and superiority over other offers that have been made.

Is it time to invest in Healthscope?

Healthscope has had a difficult couple of years. Trading conditions have been tough, and so something like this is welcome news for the battered company.

Yet the offer is yet to result in a transaction, so shareholders have been advised not to take any action just yet. There are other great stocks in the healthcare sector at the moment that may be attractive to different types of investors. It could be wise to wait and see on this one, and take a look at those in the meantime.

Let’s stay abreast of any developments from here.


Ryan Dinse

For Money Morning

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Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

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