A sign for a Heathscope hospital is seen in central Melbourne, Australia, on July 16, 2010.Mick Tsikas/Reuters
Australia’s Healthscope Ltd on Tuesday cut its fiscal 2019 hospital operating earnings guidance and set May 22 as the date for shareholders to vote on the takeover bid from Canadian investment firm Brookfield.
The hospital operator said its guidance cut was prompted by weaker private hospital market conditions, as well as the prioritization of public over private patient care in the ramp up of its Northern Beaches Hospital in New South Wales.
The company said it was now targeting hospital operating core earnings in a range of A$362-million to A$376-million (C$346-million – $360-million), or a growth of 5 to 9 per cent, from its initial target of at least 10-per-cent growth on 2018.
Healthscope had reported hospital operating core earnings of A$344.7-million in 2018.
After months of negotiations and rival offers, the company had entered a scheme of arrangement with Brookfield in February for a A$4.35-billion (C$4.16-billion) takeover. The deal was approved by Australia’s foreign investment regulator in March.