JSM Financial: Blackstone Group joins the bidding for Australia’s Healthscope.

May 25, 2010 - PRLog -- JSM Financial sources report that U.S. private equity giant Blackstone Group has joined TPG Capital and Carlyle Group in their bid to acquire the Australian hospital operator Healthscope LTD.

Blackstone was initially reported to be considering mounting its own independent bid but later elected to join Carlyle Group and TGP in order to provide additional financial backing after a syndicate of banks pulled back loan commitments after two of Healthscopes competitors issued profit warnings.

According to Healthscope sources, the board is currently considering an offer of $4.76 (A$5.75) per share, boosted from an earlier bid of $4.55 (A$ 5.50) . The firm, JSM Financial has learned, is also in the process of spending over $195 million on hospital beds and operating theatres as Australian demand for private health care recently reached a 27-year high.

The Melbourne headquarter company owns or operates 43 hospitals, including Sydneys Prince of Wales Private Hospital and Melbourne Private Hospital on the outskirts of the city. Above these Australian hospitals the firm also operates the Gribbles pathology chain in Australia, New Zealand, Malaysia, Singapore and Mauritius.

JSM Financial was told that Goldman Sachs, JB Were and Lazard Ltd are advising Healthscope on the deal.

If successful the bid would be the largest private equity bid for Australia since early 2008.

JSM Financial earlier reported that Blackstone, which is being advised by UBS, recently announced their intention to establish a presence in Australia and will shortly be opening an office there.

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