Healius, Australia’s No. 2 medical center operator, on Monday rejected a A$1.7 billion (US$1.21 billion) buyout approach from Chinese construction company Jangho Group, Reuters reports.
The Australian firm, known until recently as Primary Health Care, said its board “unanimously believes that the proposal is opportunistic and fundamentally undervalues Healius,” the report said.
Jangho, which is Healius’ biggest shareholder, with a 16 percent stake, made a bid last week to acquire the New South Wales-based company.
The deal, which would have made Jangho one of China’s biggest healthcare plays in Australia, came amid a push by Chinese investors to buy Australian health-related firms in a variety of subsectors.
Healius also cited possible regulatory hurdles as one of the likely impediments to the deal. The acquisition would have required the assent of cross-border M&A regulators of both countries.
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