Carlyle and TPG win bidding war for Australia's Healthscope
19 July 2010
US private equity firms Carlyle Group and TPG today won a bidding war for Healthscope Ltd with an offer of A$6.26-a-share valuing Australia's second-largest hospital operator at A$2.7 billion ($1.7 billion).
Their winning bid trumped rival New York City-based Kohlberg Kravis Roberts & Co, which had reportedly made an offer of A$5.80 a share.
Carlyle and TGP, which collectively manage over $135 billion in equity capital, had offered A$6.26-a-share, a premium of 39 per cent to Healthscope's closing price of A$4.50 on 13 May, the day prior to the announcement that Healthscope had received an indicative proposal, valuing the hospital operator at A$2.7 billion.
Although the bid values Healthscope at A$2.7 billion, the price will be reduced by any future dividends that Healthscope pays to shareholders prior to the completion of the acquisition.
TPG, Carlyle Group and Blackstone Group had in May formed a consortium to bid for Healthscope, but early last week, Blackstone withdrew from the consortium having differences in pricing with its partners.
In early June, US-based Tenet Healthcare Corporation, which had also bid for Healthscope, withdrew after its shareholders opposed the acquisition.