HLS +8.27%: Healius jumped today after a takeover bid from competitor Australian Clinical labs was announced pre-market. The deal would see Healius shareholders receive 0.74 ACL shares for each HLS owned, which represents no premium to Friday’s close price, but Healius shareholders would end up with 68% of the combined group. The strange deal, where the smaller ACL is the aggressor, is banking on becoming the largest pathology company in Australia with significant synergy upside in the range of ~$95m in EBIT, nearly as much as consensus estimates have Healius pencilled in for in FY23. While a deal makes sense, it’s unlikely to see a stamp of approval on current terms given Healius closed at a ~10% premium to the offer.
MM is bullish Healius (HLS)
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