Morning Flash AP: Healius still trades below peers despite share price jump, takeover talks with Partners Group may progress in coming months

Although Healius’ [ASX:HLS] shares have risen 20.9% since announcing last month the AUD 500m sale of its medical centres unit to BGH Capital, the company, which remains subject to an indicative AUD 3.4 p/s offer from Partners Group, is still trading at a discount to peers Sonic Healthcare [ASX:SHL] and Integral Diagnostics [ASX:IDX].

Although Healius’ [ASX:HLS] shares have risen 20.9% since announcing last month the AUD 500m sale of its medical centres unit to BGH Capital, the company is still trading at a discount to peers Sonic Healthcare [ASX:SHL] and Integral Diagnostics [ASX:IDX]. 

The sale of the medical centres business is designed to simplify Healius’ portfolio and turn it into a specialist diagnostic and day hospitals business. It is feasible that Healius could be valued more in line with its peers.  
 

Sonic Healthcare and Integral Diagnostics which are currently trading at 15.50x and 17.29x EV/TTM EBITDA, respectively, while Healius is trading at a pro-forma EV/TTM EBITDA of just 12.31x. 

Meanwhile, Healius is still subject to an indicative AUD 3.4 p/s offer from Partners Group. The offer, which Healius, in March, said neither reflected the fundamental value of the company nor represented compelling value to warrant the granting of exclusive due diligence, would value the business at 13.39x TTM EBITDA – still below the trading level of its peers. 

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by Vivian Wong