Healthscope acquisition one step closer after Federal Court approval

The Healthscope Limited (ASX: HSO) share price could see higher trading volume this morning after it announced it had received court approval to vote on its proposed takeover by Brookfield.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Healthscope Limited (ASX: HSO) share price could see higher trading volume this morning after it announced it had received court approval to vote on its proposed takeover by Brookfield.

What did Healthscope announce yesterday?

Healthscope announced that the Federal Court has ordered a meeting of Healthscope shareholders to consider and vote on the previously announced scheme of arrangement regarding Brookfield's acquisition of all Healthscope shares.

The Federal Court order follows Brookfield's receipt of all regulatory approvals for the deal contemplated under the Implementation Deed.

If the scheme is approved by the required majority of Healthscope shareholders and all relevant conditions satisfied or waived, Healthscope shareholders will receive cash consideration of $2.465 per Healthscope share to be paid on the implementation date (currently slated for 6 June 2019).

The Healthscope Board continues to unanimously recommend that Healthscope shareholders:

  • Vote in favour of the scheme
  • Accept the takeover offer for all Healthscope shares owned, and
  • Vote in favour of the capital return

Which S&P/ASX200 shares would I be investing in?

Given Healthscope's shares are currently trading at $2.46 per share, I wouldn't expect the share price to move at all provided the Brookfield deal is approved.

Instead, I'd be checking out the likes of Appen Ltd (ASX: APX) or Afterpay Touch Group Ltd (ASX: ALU) which have been soaring higher so far in 2019.

Afterpay has continued to be one of the top performers in the S&P/ASX200 Index (ASX: XJO) in 2019 and its share price growth has been fuelled by favourable Senate inquiry findings and a successful international expansion.

While the company currently generates its revenue in the form of a fee or "spread" from its retail merchant partners, the real value in Afterpay remains its future potential as a data organisation.

With targeted information on each demographic and their spending habits, Afterpay represents an advertiser's dream and the ability to monetise this significant dataset in an ethical and profitable manner is the key to the business' future success.

For those who want to look for growth outside of the mining sector, this top-rated stock could boost portfolio gains as it continues to soar in a $22 billion industry.

Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 ASX healthcare shares surging on big news

The ASX healthcare sector is higher on Tuesday and these stocks are among the strongest performers.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

The pros and cons of buying CSL shares right now

It’s an interesting time to consider this healthcare giant.

Read more »

Vanadium Resources share price person riding rocket indicating share price increase
Healthcare Shares

Why did this ASX biotech stock explode 52% higher on Monday?

Shareholders of this stock were smiling today. What happened?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why is everyone talking about ResMed shares?

It’s been a good year for ResMed shareholders. Let’s find out why.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

This bombshell for ASX healthcare shares could hit 6 million Australians

This could have a large impact.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

2 ASX healthcare shares having a stellar run today

The ASX healthcare sector is down today but these two stocks are bucking the trend.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX 200 stock hit a 52-week low and a top broker thinks it can rebound

Patient investors may see this stock make a pleasing recovery.

Read more »