JSM Financial: Kohlberg Kravis Roberts and CVC Asia-Pacific may mount united bid for Healthscope.

As the bidding war intensifies CVC may well join KKR’s $1.5 billion bid for the Australian hospital operator.
June 1, 2010 - PRLog -- Recent reports available to JSM Financial indicate that the private equity company CVC Asia-Pacific has been in negotiations with Kohlberg Kravis Roberts &Co about joining their $1.5 billion bid for Australian hospital operator Healthscope.

"At this stage they are not together, but it is highly likely they will be,” JSM Financial understands an anonymous source was recently quoted as saying.

Another source close to the matter reportedly said that CVC was to join KKR which is currently doing its due diligence on Healthscope, the second-biggest Australian hospital owner.

A bidding war for the heath care group developed between private equity firms recently when KKR & Co and another unnamed company – thought to be U.S. based Tenet Healthcare Corp made separate offers which both valued Healthscope at $1.54 billion, JSM Financial has learned.

Both these bids beat the earlier bid of the consortium of private equity firms which include Blackstone Group LP, TPG and Carlyle, of $1.46 billion.

CVC is currently the owner of the largest private diagnostic business in Australia which it purchased in 2006.

An increasing old age population and the countries push to increase health insurance are making the Australian healthcare industry very attractive as the interest from four of the globes largest private equity companies shows.

These private equity heavy-weights, JSM Financial has learned, are being advised by top investment banks as well, with KKR drawing from Morgan Stanley, TGP and Carlyle taking advice from Credit Suisse and Macquarie and Blackstone Group being advised by UBS.

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