Primary Health Care reported a lower first-half net profit today, hit by the interest costs of buying a 20 percent stake in its takeover target Symbion Health.
Net profit fell by 23.7% to $20.4 million for the six months to December from $26.8 million the previous year.
Although revenues were up strongly from its 40 medical centres during the six months to December, the company had borrowed more than $500 million to help fund the Symbion purchase.
Last week Primary made its final bid for Symbion of $2.7 billion and said it would declare the takeover bid unconditional if it secured more than 50 per cent of Symbion by tomorrow.
Primary said as of Feb. 8 it had a 49.7 interest in Symbion, 25.35 percent of which was held in an institutional acceptance facility, from which the original owners may withdraw their shares.
The company has been vying with private hospital operator Healthscope for control of Symbion's medical testing business, in a long-running battle for assets in an Australian healthcare sector set for rapid growth as the population ages and use of private health insurance increases.
Primary shareholders will receive an interim dividend of 22 cents per share.
Shares in primary fell by 36 cents to close down by 3.4% at $10.24.
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