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Lifehealthcare Group Ltd is in takeover talks

Takeover agreement

The Lifehealthcare Group Ltd (ASX: LHC) share price won’t be going anywhere during trade on Monday after the healthcare solutions company placed its shares into a trading halt.

Why are its shares in a trading halt?

According to the release, management has requested the trading halt pending an announcement regarding a proposed acquisition of the company.

No further details were provided in the release but the AFR is reporting that Australia’s largest private equity firm, Pacific Equity Partners, is believed to be interested in taking over the company just four years after it listed on the Australian share market.

LifeHealthcare, which was previously owned by private equity group Crescent Capital Partners, was listed on the ASX at $2.01 per share in December 2013. On Friday its shares closed the week at $2.57.

What now for LifeHealthcare?

No takeover details have been provided, but I suspect a price north of $3.20 would be required to take the company private again. This equates to a premium of approximately 25% from the last close price.

Shareholders won’t have to wait long to find out for sure what is happening. According to the release, the company expects to reveal all in an announcement no later than Wednesday of this week.

Until then I think that investors ought to take a look at some of the other top shares available to them in the healthcare sector.

These include the likes of private hospital operator Ramsay Health Care Limited (ASX: RHC) and fast-growing medical imagining company Pro Medicus Limited (ASX: PME).

I think both of these companies have a long runway for growth which makes them well worth considering as a buy and hold investment today. Especially considering the favourable tailwinds the healthcare sector continues to experience from ageing populations around the world.

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As of 2.11.2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PRO Medicus Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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