Australia's Healius jumps on $657 mln sale of diagnostic imaging arm

Healius

23/09/2024 04:40

(Updates)
    ** Shares of Healius  HLS.AX  rise as much as 6.5% to
A$1.715, log biggest intraday percentage gain since Aug. 21
    ** HLS among top 10 gainers in ASX200 benchmark index
 .AXJO 
    ** Healthcare firm signs binding agreement to sell its
diagnostic imaging arm, Lumus Imaging, to Affinity Equity
Partners
    ** Says deal implies an enterprise value of A$965 mln 
($657.65 mln)
    ** Says proceeds to be used to reduce debt, among others
    ** Jefferies cuts price target to A$1.75 from A$1.80,
retains "hold" rating
        ** Brokerage says sale of Lumus will "alleviate balance
sheet pressures", allow HLS to focus on pathology and
biosciences
  
    ** Including session's gains, HLS up 1.8% YTD,
underperforming ASX200 that is up 7.7%

($1 = 1.4674 Australian dollars)

 (Reporting by Sameer Manekar and Rajasik Mukherjee in
Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com;))