Healius bidder to up pressure after takeover bid rejection

 

Chinese group Jangho will lobby the board of healthcare giant Healius to reconsider its $2 billion takeover bid after the company swiftly dismissed the offer on Monday.

Jangho, which already owns 16 per cent of Healius, said it was “disappointed” the company formerly known as Primary Health had declined to even let it into due diligence, and warned there was no guarantee that the current board and management could turn the company around.

The rejection has heaped pressure on Healius to improve returns after several years of underperformance, or face the wrath of shareholders who will have missed out on the premium Jangho offered.

“The proof will be in the pudding,” said Jason Beddow from Argo Investments, which is Healius ninth-largest investor with about 1.5 per cent of its shares.