Betting odds, page-151

If true, opens up register:

The Australian: China’s Jangho is understood to have waved the white flag when it comes to its attemptsto buy listed medical provider Healius, prompting suggestions the Chinese investor ispoised to sell down its $300m-odd stake in the business.While the timing of a selldown is unclear, such deals typically unfold around the time ofresults, and Healius reports its half-year results on February 26.Macquarie Capital has previously advised Jangho, so it would no doubt be on standbyfor a block trade.Healius typically takes advice from UBS, which is working on a sales process of itsmedical centres, along with Morgan Stanley.Jangho’s holding in Healius has always been seen as the stumbling block for any otherprivate equity firm or suitor coming forward to buy the company previously known asPrimary Healthcare.However, with Jangho no longer in the picture, it could pave the way for another suitor.It is thought the impact of the coronavirus may be weighing on Jangho’s decision toabandon its pursuit of Healius.The company has a stake of about 15.9 per cent that it started purchasing in 2016 whenshares were trading around the $4 mark.HA year ago, it made a $2bn takeover bid for the company that now has a $1.8bn marketvalue. The offer was rebuffed by the board.Speculation emerged last year that Jangho was going to come back with a higher offerafter the federal election, but the understanding was it was likely to face oppositionfrom the Foreign Investment Review Board.Buyout funds were then in talks about embarking on a break-up of the company, withgroups such as EQT, Apollo, TPG Capital, KKR, Bain, PAG Asia and BGH Capital allthinking about a bid for the business.BGH has been particularly active in the market of late examining various opportunities.It launched a bid for Healius’s rival Healthscope last year, but lost out to private equityrival Brookfield, which offered a higher price.Now it seems the Healius board’s decision to sell the medical centres could be one thatpre-empts that move.As earlier reported by this column, Henry Bateman, the son of the company’s founder,the late Ed Bateman, is keen to buy the centres.Jangho’s offer for Healius was at $3.25 a share and the stock closed at $2.92 on Tuesday,so Jangho would probably be selling out at a loss if it offloaded its stake now.Healius has about 96 medical centres and day hospitals, with a total of 2541 sites,including those that also offer pathology and diagnostic imaging services