China’s Jangho bids for rest of Healius in RM5.8b deal

By BLOOMBERG

SHANGHAI • Jangho Group Co Ltd offered to acquire the stake in Australia’s Healius Ltd it doesn’t already own in a deal that would value the company at about A$2 billion (RM5.8 billion), as firms in Asia jostle to acquire healthcare operators to serve a growing demand for better doctors and services.

Beijing-based engineering company Jangho already holds about 16% of Healius and is offering A$3.25 a share in cash for the remaining stake, Healius said in a statement yesterday.

That represents a 33% premium to Healius’ closing price on Wednesday of A$2.44. Healius, which operates medical centres and specialist clinics in Australia, said it would assess the proposal and hasn’t formed a view on the offer price.

Asia’s private healthcare operators have been expanding to meet the demands of affluent consumers looking for better medical care.

Deal activity in the region has been rife, such as Japan’s Mitsui & Co Ltd agreeing in November to pay US$2 billion (RM8.28 billion) to become the largest shareholder in Malaysian hospital operator IHH Healthcare Bhd.

Jangho, an engineering and construction company, has been trying to diversify into healthcare services. Its shares fell as much as 2.9% in Shanghai trading yesterday.

Healius shares rose as much as 15% to A$2.80 in trading in Sydney yesterday, for the biggest intraday gain in almost three years.

Healius, which changed its name from Primary Health Care last year, operates about 2,400 pathology centres, 70 medical centres and is partnered with 1,500 general practitioners, dentists and other healthcare specialists.