Healthscope sells Asian pathology business
Hospital operator Healthscope has agreed to sell its Asian pathology business for $279 million to private equity firm TPG Capital.
The Melbourne-based company had flagged the sale of the operations, which consist of 39 pathology laboratories across Singapore, Malaysia and Vietnam, in May.
Healthscope expects to book a one-off gain of $165 million in its 2018-19 financial results from the sale, with the proceeds to be used to pay down debt and fund its expansion plans.
Healthscope chief executive Gordon Ballantyne says the sale will allow its management team to focus on its core operations.
The company has 43 hospitals across Australia, and pathology operations in New Zealand.
Healthscope is a hot takeover target, having rejected two $3 billion-plus offers earlier this year after saying they were conditional and undervalued.
The stock closed at $2.23 on Friday, giving the company a market capitalisation of $3.88 billion.
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