HealthCo Healthcare and Wellness Shares Could Rebound on Healthscope Proposal, Says Jefferies

MT Newswires Live
Apr 02

HealthCo Healthcare & Wellness REIT (ASX: HCW) could see a turning point in its discounted share price following a "holistic solution" proposal for Healthscope hospitals, amid the private hospital operator's financial challenges, Jefferies said in a note on Wednesday.

According to media reports, a consortium including Cavalry, PEP-backed Healthe Care, Acurio Health, KnG Group and a fifth undisclosed private hospital operator has submitted bids to acquire Healthscope's portfolio of 28 hospitals for around AU$400 million.

HealthCo Healthcare and Wellness and Northwest Healthcare Properties, landlords of Healthscope hospitals, are reportedly supportive of the proposal, Jefferies added.

Jefferies maintained its hold rating on the REIT with price target of AU$0.70.

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