Healthscope Ltd (ASX: HSO) has given investors an update about the potential Brookfield takeover.
Healthscope is one of Australia’s largest private hospital operators and Brookfield is a Canadian-based asset manager.
Is the Healthscope takeover about to go ahead?
Brookfield is proposing to acquire Healthscope through an off-market takeover over with a value of $2.455 per share, and a simultaneous scheme of arrangement representing a value of $2.585.
Today, Healthscope said that Brookfield has indicated it is in the process of finalising its due diligence analysis & debt commitments and intends to seek the necessary internal approvals to submit a full offer by the end of January 2019.
The engagement with Brookfield is now being conducted on a non-exclusive basis, the exclusivity period has now expired.
Healthscope shareholders were reminded that there is no certainty the offer will go ahead.
Is Healthscope a buy?
There is limited maximum ‘upside’ of only 7.7%, with the highest price Healthscope shareholders can receive being $2.585 compared to the share price of $2.40. I wouldn’t say it’s a buy today, but it could one that interests Luke Cummings from Harvest Lane Asset Management.
I prefer looking at shares where that isn’t a limit to the potential growth of a share price. Two ASX businesses growing very well are the ones mentioned in the free report below.
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