Blackstone joins $1.5bn bid for Healthscope

The firm has joined a private equity syndicate, which reportedly includes TPG and Carlyle, in a bid for the Australian healthcare provider.

The Blackstone Group has joined a consortium, reportedly comprising of TPG Capital and the Carlyle Group, in bidding for a share of publicly-listed Australian hospital operator Healthscope, according to a source.

The firm and Healthscope declined to comment but the bid is estimated to be worth over A$1.74 billion (€1.2billion; $1.5 billion).

Healthscope recently granted the consortium permission to conduct due diligence after it raised its offer from A$5.50 per share to A$5.75 per share, according to a statement submitted to the Australian Securities Exchange. Healthscope shares last closed at A$5.150.

This recent news comes on the back of the recent opening of Blackstone's Sydney office, its first in Australia. According to media reports, Blackstone had sought to open a Sydney office last year, but delayed plans while awaiting the Australian Taxation Office’s decision on its proposals to increase the tax burden on private equity activity in the country. The agency recently deferred ruling on the issue for the third time.

A successful bid for Healthscope would mark the firm’s maiden investment in the country.