BGH Capital jilted twice in one night as Navitas, Healthscope offers rejected

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Australian PE house BGH Capital has had two separate buyout offers rejected in one day, emphasising heightened competition in the market.

Hospital operator Healthscope Ltd has chosen Brookfield Capital Partners’ A$4.5bn ($3.24bn) bid, over BGH’s A$4.1bn offer, after both firms had their previous takeover bids labelled as too cheap.

BGH has also seen its A$1.97bn takeover offer for Australian education major Navitas rejected. The firm, which was bidding as a part of consortium with AustralianSuper pension fund, already had its previous offer rebuffed by the company’s board.

Brookfield was offering $2.58 per share for Healthscope, representing a 24 per cent premium on its closing price on Friday. BGH’s offer for Navitas was 26 per cent higher than the company’s closing price 9th October, according to a Reuters report.

Healthscope is Australia’s second-largest private hospital operator and manages with 43 hospitals as well as a pathology operation in New Zealand. The Melbourne headquartered business has over 18,000 employees.

Navitas provides educational services to over 80,000 students, through its operations throughout Australia as well as in North America, Europe, Africa and Asia

BGH Capital closed the biggest-ever first-time private equity fund focused on Australia and New Zealand back in May, after raising around A$2.6bn. The final close came just months after the firm was set up by Ben Gray and Simon Harle.

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