Healthscope Ltd. denied due diligence access to BGH Capital and Brookfield Asset Management Inc. in relation to their separate proposals to acquire the company.
Healthscope's board "carefully considered each proposal and concluded that neither proposal adequately reflects the long term value of Healthscope, nor its underlying assets nor future potential," Chairman Paula Dwyer said in a news release.
In April, Australian private equity firm BGH Capital and its partners offered to acquire Healthscope at A$2.36 per share, valuing the Australian hospital operator at US$3.1 billion. In May, Canadian asset manager Brookfield offered to acquire Healthscope at A$2.50 per share, a valuation of US$3.3 billion.
Healthscope said the proposals undervalue the company regarding matters including an improvement in operating performance in 2019, returns from a capital investment program, and value of its property portfolio. The company added that each proposal would have required extensive due diligence at a critical time before the opening of its Northern Beaches Hospital.
Melbourne, Australia-based Healthscope is planning a strategic review of its hospital property portfolio and will evaluate a possible sale and leaseback deal.