Healthscope Ltd (ASX:HSO) share price rockets higher on new takeover approach

The Healthscope Ltd (ASX: HSO) share price has had a fantastic start to the week after announcing yet another takeover approach.

The private hospital operator’s shares are up 11% to $2.31 in morning trade.

What happened?

This morning Healthscope announced that it has received a proposal from Brookfield Capital Partners and its affiliates to acquire 100% of Healthscope by way of an off-market takeover offer.

Brookfield Capital Partners has made an offer representing a total value of $2.455 per share, and a simultaneous scheme of arrangement representing total value of $2.585 per share.

Under the scheme of arrangement, shareholders would have the option to receive all cash or to receive some of the consideration as shares in an unlisted company controlled by Brookfield that would own 100% of Healthscope.

This offer compares favourably to the preliminary, non-binding offer of $2.36 cash per share from the BGH – AustralianSuper Consortium.

Incidentally, the Healthscope board has advised that it has decided not to provide the BGH – AustralianSuper Consortium with due diligence access but has granted it to Brookfield Capital Partners.

According to Healthscope chairman, Paula Dwyer, this was done for a number of reasons.

She explained: “We consider the Brookfield Proposal to be attractive for shareholders. It is superior to the BGHAustralianSuper proposal and provides enhanced certainty. It also offers more options for Healthscope shareholders, including an option to retain an equity exposure to an unlisted Healthscope. As such, we will grant Brookfield the opportunity to conduct exclusive due diligence to facilitate a binding offer for Healthscope.”

Given its poor performance over the last couple of years and the tough trading conditions it faces currently, I agree with the board that this is an attractive offer for shareholders.

Though it is worth remembering that there is no guarantee that this offer will result in a transaction. As such, management has advised shareholders that they do not need to take any action at this stage.

So, instead of picking up Healthscope shares I would suggest investors consider gaining exposure to the healthcare sector through the likes of CSL Limited (ASX: CSL) and ResMed Inc. (ASX: RMD).

Alternatively, this top dividend share could be just as good. It has been tipped for big things in the future.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.