Australian hospital operator Healius Ltd. said it received a "highly conditional," A$3.25-per-share buyout offer from its largest shareholder Jangho Group Co. Ltd.
Jangho, a Chinese construction and engineering company, already owns a 15.93% stake in Healius. The Beijing-based company aims to expand its healthcare business with the acquisition, and intends to buy the Healius shares it does not yet own via a scheme of arrangement through a wholly owned subsidiary.
The unsolicited, nonbinding offer values Healius' entire equity stake at about A$2.02 billion.
Healius said its board is evaluating the deal, and has not yet decided whether the proposal merits a recommendation to shareholders.
Jangho said the pricing of the deal is based on assumptions, including Healius posting an after-tax profit of at least A$100 million in fiscal 2019, which ends June 30.
The proposed deal is subject to conditions, including completion of due diligence and regulatory approval. Jangho said it expects to complete due diligence in about five weeks, and will raise money for the acquisition with debt and equity issuance.
Jangho appointed Macquarie Group as financial adviser and MinterEllisonRuddWatts as legal adviser. Healius hired UBS and King & Wood Mallesons as financial adviser and legal adviser, respectively.
Jangho in 2015 acquired Australia's Vision Eye Institute Ltd and also own two healthcare-related subsidiaries — Nanjing Huasheng Medical Technology Co. Ltd. and Nanjing Zeming Hospital Management Co. Ltd.
Healius was previously called Primary Health Care. The company was established in 1994, has 75 medical centers and 142 diagnostic imaging sites, among other facilities.
In 2017, Primary Health Care's former CEO Peter Gregg denied media reports that he was working with Jangho Group regarding a potential takeover,