Rumours are swirling around the takeover offer for ASX healthcare share Healius Ltd (ASX: HLS). In February, private equity group Partners Group bid $3.40 a share for Healius, valuing the company at $2.1 billion. Healius shares are currently trading at $2.63 at the time of writing.
Takeover to be rejected?
The Australian reported this morning that directors of Healius are set to knock back Partners Group's offer and advise shareholders to reject the approach. The Healius share price fell in early trade and is currently down nearly 6%.
Healius, however, has issued a statement noting the 'media speculation' and stating that there has been no finalisation of a response on Partners Group's offer.
Market turmoil may impact offer
The proposed takeover would take place via a scheme of arrangement whereby a subsidiary of Partners Group acquires all shares in Healius.
Analysts had previously speculated that the takeover could be in doubt due to market turmoil, which could impact on Partners Group's ability to secure funding for the transaction.
Market turmoil could also lead Partners Group to lower its offer for the healthcare provider. According to The Australian, however, some believe Partners Group could come back with a higher offer should their current proposal be rejected.
The private equity firm is reportedly interested in Healius due to its pathology operations, and currently owns France's largest pathology provider. Healius is itself currently undertaking a sale of its Medical Centres, which has also piqued interest amongst private equity buyers.
Pathology business to benefit
The current market panic has caused Healius shares to spiral, falling more than 14% from February's high of $3.18. The Pathology business, however, is likely to benefit from the coronavirus onslaught, as the pandemic will lead to more visits to GP's, and increasing requests of pathology laboratories and for diagnostic imaging.
Partners Group has already taken a stake in Healius, entering a call option with China's Jangho (Healius' largest shareholder). The call option gives Partners Group the right to acquire Jangho's 15.88% stake in Healius. Jangho itself launched a $2 billion takeover bid for Healius last year which was rejected by the Healius' board.
The Healius board has stated this morning that it intends to announce its response to Partners Group's proposal in the near future.
