China’s Luye agrees to get Australian hospital group for $688 mln

SYDNEY Dec 7 Luye Medical Group has agreed to get private equity-owned Australian hospital operator Healthe Care Pyt Ltd, the firms said, in the Chinese firm’s very first foray into the hospital sector.

The final cost was not disclosed but regional media had reported the deal was worth A$ 938 million ($ 688 million).

Luye Medical beat rival bids from Baring Private Equity and Bain Capital which banking sources mentioned were also in the running for Australia’s third-biggest privately owned hospital operator.

The sources declined to be named as they have been not authorised to speak about the transaction.

“I strongly think that Healthe Care will provide us with a platform upon which we can build a globe class and highly effective healthcare solutions business not only in Australia and China, but also in numerous other countries in Asia,” mentioned Luye chairman Luis Diane Bo.

The business, part of the privately owned Luye Group, was advised by Barclays.

Archer Capital had bought Healthe Care from CHAMP Private Equity in 2011 for A$ 230 million. Morgan Stanley and Luminis Partners advised Archer on the sale.

Healthe operates 17 private hospitals across five states with more than 1,800 hospital beds according to info on its website. ($ 1 = 1.3643 Australian dollars) (Reporting by Sharon Klyne of RLPC Editing by Miral Fahmy)