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UPDATE 1-Australia's Healius rejects Partners Group's $1.3 bln buyout offer

Published 16/03/2020, 11:21 am
Updated 16/03/2020, 11:28 am
© Reuters.  UPDATE 1-Australia's Healius rejects Partners Group's $1.3 bln buyout offer

(Adds share price, background, CEO comment)

March 16 (Reuters) - Australia's Healius Ltd HLS.AX on Monday turned down a A$2.12 billion ($1.31 billion) takeover offer from private equity firm Partners Group PGHN.S , saying it undervalued the medical centre operator.

Healius, however, said it was open to further talks with Partners Group to get a better proposal from the Swiss firm.

Partners made a A$3.40 per share all cash offer last month, after buying China's Jangho Group Co Ltd's 601886.SS 15.9% stake in Healius. of New South Wales-based company were trading 8.1% lower at A$2.49 by 0005 GMT, much lower than the offer price, amid a slump in the broader market .AXJO .

"We recognise the extreme volatility in the share market at present and the pressure our shareholders are under to deliver returns to their clients," Chairman Rob Hubbard said.

He added "Healius is also in the process of seeking offers for its medical centres business which is believed to be undervalued in the current share price."

Jangho last year offered to buyout the medical centre operator for A$1.7 billion or A$3.25 per share, but saw its offer declined on grounds that it undervalued the company. Group was not immediately available for a comment outside regular business hours.

($1 = 1.6226 Australian dollars)

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