Private healthcare company Healius has netted $483 million after completing the sale of its medical centres business to BGH Capital (which is bidding for Village Roadshow).
Shares closed up to $3.56, up 0.8%. Included in the sale were included in the transaction are 69 large-scale medical centres, 13 Health & Co practices and 62 dental clinics across Australia, mostly under their own brands.
The deal, announced earlier this year, saw Healius look to sell the centres to focus on its fertility, diagnostics and its day-hospital businesses.
The company said proceeds from the sale included a full deferred consideration for its dental business of $75 million.
The business will now focus on being a specialist diagnostics operator and said it would give a further investor briefing about strategy in a fortnight.
Healius’ CEO, Dr Malcolm Parmenter, said: “This transaction simplifies our portfolio and allows us to focus on our market leading diagnostics and day hospital businesses, delivering on our mission of sustaining life-enhancing healthcare through people who care.”
“It is a positive step for Healius, strengthening the company, reducing our net debt and freeing up capital for investment.”
There was no mention of what the company will do with the cash in yesterday’s statement but Healius said earlier in the year the cash will be used to reduce net debt, reducing its gearing from 2.7 times to 1.5 and to free up capital for investment.