Australian Clinical Labs to withdraw its $1 bln offer to buy Healius (updated)

Healius

14/12/2023 22:51

(Adds details on Australian competition regulator in paragraph
2, ACL quote in paragraph 4)
       Dec 15 (Reuters) - Australian Clinical Labs  ACL.AX 
said on Friday it intends to withdraw its takeover bid for buy
Healius Limited  HLS.AX , citing a "significant" deterioration
in the performance of the medical center operator since the
offer was announced.
    Earlier in the day, the Australian competition regulator
decided to oppose Australian Clinical Labs' A$1.52 billion 
($1.02 billion) buyout offer, as it is likely to result in a
substantial lessening of competition in pathology services
markets in the country. 
        Australian Clinical Labs noted a 45% slide in Healius'
share price since announcement of the deal on March 20 and that
its board was concerned for the latter's half-year results. 
    "The ACL Board is concerned based on the 1H Guidance that
Healius is at risk of a significant statutory NPAT loss in 1H
FY24," the company said in a statement.  
        Healius in November forecast its earnings before
interest and tax for the first-half to be between A$14 million
and A$17 million. 
    


($1 = 1.4932 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru; Editing by Shinjini
Ganguli)
 ((Archishma.Iyer@thomsonreuters.com;))