Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Healius: Australian Clinical Labs' Opportunistic Merger Proposal

Quiddity Advisors

Event-Driven

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<div>Yesterday, PE outfit <a href="https://www.partnersgroup.com/en/" target="_blank" rel="noopener">Partners Group</a> <a href="https://www.asx.com.au/asxpdf/20200225/pdf/44ffm7pd40y1kq.pdf" target="_blank" rel="noopener">announced</a> it had acquired, via an option deed with Jangho, a relevant interest in 15.88% of the shares in <a href="https://www.smartkarma.com/entities/healius-ltd" target="_blank" data-smartkarma-citation="entities:6296:1" rel="noopener">Healius (HLS AU)</a>. This was followed by an <a href="https://www.asx.com.au/asxpdf/20200225/pdf/44ffv1d3651vgv.pdf" target="_blank" rel="noopener">announcement</a> of a non-binding indicative proposal from Partners at $3.40/share, a 23% premium to last close, by way of a Scheme. </div>
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<p>This morning, Healius <a href="https://www.asx.com.au/asxpdf/20200226/pdf/44fg9819mvk4bm.pdf" target="_blank" rel="noopener">announced</a> its 1H19 results. Revenue, EBIT and NPAT were up 7%, 4%, and 8% compared to the six-month period ending 31 Dec 2018.  A dividend of A$0.26/share (fully franked, 38% payout) was declared with an ex-date on the 26 March.</p>
<p>Healius also announced the sale process of part or all of the medical center business to "<em>focus on a range of growth initiated in the diagnostic division and, in time, the day hospital businesses</em>." </p>
<p>There are questions marks over the merits of offloading "part" of the medical centres. There is also possible pushback on the fairness of Partners' indicative proposal.</p>
<p>But ASIC taking a closer look at the Partners/Jangho call option deed may frustrate the deal.</p>
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<p>As always, more below the fold.</p>
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Yesterday, PE outfit Partners Group announced it had acquired, via an option deed with Jangho, a relevant interest in 15.88% of the shares in Healius (HLS AU). This was followed by an announcement of a non-binding indicative proposal from Partners at $3.40/share, a 23% premium to last close, by way of a Scheme. 


This morning, Healius announced its 1H19 results. Revenue, EBIT and NPAT were up 7%, 4%, and 8% compared to the six-month period ending 31 Dec 2018.  A dividend of A$0.26/share (fully franked, 38% payout) was declared with an ex-date on the 26 March.
Healius also announced the sale process of part or all of the medical center business to "focus on a range of growth initiated in the diagnostic division and, in time, the day hospital businesses." 
There are questions marks over the merits of offloading "part" of the medical centres. There is also possible pushback on the fairness of Partners' indicative proposal.
But ASIC taking a closer look at the Partners/Jangho call option deed may frustrate the deal.


As always, more below the fold.




Healius

Healius: Jangho's Preferential Option