Carlyle Group and TPG Capital agreed to buy Australian private healthcare provider Healthscope Ltd for A$2 billion, or $1.7 billion.
Healthscope said today that shareholders should accept the cash offer of A$6.26 a share, Bloomberg News reported. The offer values the company at A$2.7 billion including debt.
The deal is Australia's largest buyout since 2002. Healthscope's cash from operations has risen fivefold in the last five years.
"They have essentially bought a dividend stream, which looks pretty good," Shane Storey, an analyst at Wilson HTM Investment Group in Brisbane told Bloomberg News.
Forex for Beginners
Learn about trading currencies and foreign exchange transactionsView Course »