Healthscope Ltd (ASX: HSO) shares are up 3% with the company confirming it is going ahead with the takeover with Brookfield.
Healthscope is Australia’s second largest private hospital operator and has been the focus of a bidding war between Brookfield and a consortium of BGH & AustralianSuper.
Why Healthscope shares are up 3%
This morning, the healthcare company announced it is entered into a ‘scheme of arrangement’ with Brookfield as well as a simultaneous off-market takeover offer.
Under the scheme of arrangement, Healthscope shareholders will be entitled to a total value of $2.50 per share, including a 3.5 cents per share interim dividend.
Healthscope Chairman Paula Dwyer said: “Having fully considered a range of alternatives, the Board unanimously concluded that the Brookfield Transaction is in the best interests of our shareholders.”
Healthscope also gave a trading update showing that in the first half of FY19 revenue increased by 3% to $1.22 billion and operating EBITDA grew by 7.7% to $198.1 million (click here to learn what EBITDA means).
Should you buy Healthscope shares?
Healthscope shares are now trading at around $2.45, so there appears to be very limited upside for today’s buyers unless the BGH – AustralianSuper consortium offers a higher bid.
Investors like Luke Cummings from Harvest Lane Asset Management might be interest in the difference in share price, but brokerage costs alone may make the difference to $2.50 too little to consider.
If you have Healthscope shares to sell, it could be a good idea to consider using the proceeds to re-invest in the growth shares in the free report below.
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