UPDATE 1-Healthscope agrees to $1.7 bln TPG, Carlyle offer

* Offer of A$6.26, 16 pct premium to Friday’s close

* TPG bid trumps rival bid from KKR

* Conditional on shareholder, court, FIRB approval
(Adds detail)

SYDNEY, July 19 (BestGrowthStock) – Australia’s Healthscope Ltd
(HSP.AX: ) on Monday recommended a $1.73 billion takeover offer
from private equity firms TPG [TPG.UL] and Carlyle [CYL.UL]
following a bidding war for the nation’s second-largest
hospital owner.

TPG and Carlyle’s offered A$6.26 a share, worth A$1.99
billion ($1.73 billion), a 16 percent premium to Healthscope’s
close on Friday and 39 percent above the share price in May,
before Healthscope first said it had been approached.

The higher-than-expected offer trumped a rival bid from
Kohlberg Kravis Roberts & Co (KKR.N: ) which also submitted a
final offer for Healthscope on Friday.

“After careful consideration, the Board has unanimously
concluded that the consortium’s offer provides shareholders
with an excellent opportunity to realise considerable value
from their investment in Healthscope,” Chairman Linda Nicholls
said in a statement.

The deal is conditional on shareholder, court and Foreign
Investment Review Board approval.

The buyout is the biggest private equity deal in Australia
since 2007, before the global financial crisis and surge in
funding costs stifled activity.

KKR in May lodged an indicative bid at A$5.80 a share,
while TPG and Carlyle lifted an earlier bid to A$5.75 a share
in May.

Healthscope said the bid, including debt, valued the
company at A$2.7 billion.

The health care sector is hotly sought after for growth in
Australia, where the population in expanding and ageing, and
the government is pushing patients to use private healthcare.

A separate $573 million offer is pending for rival Sigma
Pharmaceuticals (SIP.AX: ). [ID:nSGE66E011]

In Asia, bidders are also fighting over Singapore hospital
operator Parkway (PARM.SI: ), which has attracted competing
offers from Malaysian state investor Khazanah and India’s
Fortis Healthcare (FOHE.BO: ).

Healthscope owns 43 hospitals, representing 15 percent of
Australia’s private hospital market, and is the country’s
third-largest pathology business.

Goldman Sachs JBWere and Lazard advised Healthscope on the
deal.

($1=1.151 Australian Dollar)
(Reporting by Michael Smith; editing by Balazs Koranyi)

UPDATE 1-Healthscope agrees to $1.7 bln TPG, Carlyle offer