S&P/ASX 200 Index (ASX: XJO) healthcare stock Healius Ltd (ASX: HLS) is seeing some volatility today.
Shares in the pathology and imaging provider closed Friday at $1.61. In early morning trade on Monday, shares leapt to $1.715 apiece, up 6.5%. Just 20 minutes later, shares are swapping hands for $1.59 apiece, down 1.4%.
For some context, the ASX 200 is down 0.8% at this same time.
This wild performance comes following the announcement of a major asset sale.
Here's what we know.
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ASX 200 healthcare stock leaps then falls on asset sale
The Healius share price is churning after the company announced it has entered into a binding agreement to sell its Lumus Imaging subsidiary to funds managed by Affinity Equity Partners.
The ASX 200 healthcare stock cited an enterprise value of $965 million on a cash, debt and equipment-lease free basis.
Healius expects net transaction proceeds of $835 million after the repayment of equipment leases and any closing adjustments. The company anticipates more than $800 million post transaction fees, separation costs and other fees.
According to the release, this represents a multiple of 17.0 times FY 2024 earnings before interest, taxes, depreciation and amortisation (EBITDA) and 25.4 times FY 2024 EBIT.
Management said the divestment of Lumus shouldn't negatively impact the operations or earnings of Healius' remaining businesses. Post the transaction, the company will be in a material net cash position and will have transferred some $91 million in equipment lease liabilities.
Commenting on the divestment sending the ASX 200 healthcare stock on a wild ride today, Healius CEO Paul Anderson, said: "The sale of Lumus is a positive outcome for Healius shareholders, our staff, patients and referrers."
Anderson continued:
The sale will provide Healius with both the resources and time to continue to improve our Pathology operations and the scope to return cash to shareholders.
As a clinically driven, large-scale Pathology business, Healius delivers critical diagnostic services to millions of Australians each year, and we are excited by the opportunities to grow and improve the business.
Mark Chudek, managing director at Affinity Equity Partners, said: "Lumus Imaging is an exceptional business which aligns to Affinity's commitment of investing in high quality companies that have significant growth potential."
The transaction remains subject to customary conditions, though not subject to financing.
To ensure continuity for Lumus' doctors and patients, Healius said it will provide Lumus with a range of transitional services.
With today's Healius share price moves factored in, the ASX 200 healthcare stock is down 4% year to date.
