Healius Ltd. rejected the A$3.25-per-share buyout offer from its largest shareholder, Beijing-based construction and engineering company Jangho Group Co. Ltd.
The Australian hospital operator said the proposal was opportunistic, and fundamentally undervalues its stock. Healius' board also noted the highly conditional and uncertain nature of the offer, particularly the unapparent sources of funding, and regulatory conditions outside Jangho Group's control.
Healius said it is pursuing strategic opportunities which could bring value in excess of that in Jangho's proposal.
Jangho Group owns 15.93% of Healius, formerly Primary Health Care. Jangho Group's buyout proposal, worth about A$2.02 billion, would have expanded its healthcare business.