Healus’ share price spiked 17.5 per cent to $2.75 last week – including a 9 per cent jump the day before the takeover bid was announced, which the corporate regulator is looking into.
“The board remains very confident in the strategy being implemented by the management team and in the future growth of Healius,” said Healius chairman Rob Hubbard.
“We do not believe pursing the proposal is in the best interests of shareholders other than Jangho and recommend shareholder take no action.”
Jangho’s takeover proposal was also highly conditional, with funding yet to be secured and approval from Chinese and Australian regulators needed, which hardened the Healius board’s view to reject the offer, it said.
Jangho’s background is in construction supplies, and is one of the world’s biggest manufacturers of curtain walls.
But it has been diversifying into healthcare, through several investments in Australia.
In 2015, it bought a 20 per cent in the ASX-listed Vision Eye Institute from Healius (then Primary Health), and the bought the entire eyecare group.
It is also the fourth-largest investor in Monash IVF with a 4.5 per cent stake.
Healius operates about 2400 pathology centres, 70 medical centres and is partnered with about 1500 general practitioners, dentists and other healthcare specialists Australia-wide.
