TPG, Carlyle Gauge Interest in Possible Healthscope IPO

Private-equity firms TPG Capital and Carlyle Group LP sounded out investors in Asia last week about an initial public offering of Australian hospital operator Healthscope, a listing that could value the company at as much as five billion Australian dollars (US$4.7 billion), a person familiar with the matter said.

TPG and Carlyle have been considering either an IPO or the sale of the company to a strategic buyer or buyers, but an IPO appears to be the most likely option, the person said. It wasn't immediately clear when the IPO would take place.

Healthscope is one of the largest hospital and pathology companies in Australia. It has 33 hospitals, four mental-health hospitals and four rehabilitation facilities. Healthscope also operates pathology businesses in New Zealand, Malaysia, Singapore and Vietnam.

TPG and Carlyle have been actively exploring an initial public offering of Healthscope. The firms have appointed Macquarie and UBS to run a potential listing while Bank of America, Credit Suisse and Goldman Sachs are also working on a deal, a person familiar with the matter said previously. The hospital company's management has spoken to potential cornerstone investors in Asia, the Middle East and the U.S., a person familiar with the situation told The Wall Street Journal.

TPG and Carlyle bought Healthscope for about US$1.7 billion in 2010, beating out a rival offer from Kohlberg Kravis Roberts & Co. Strategic buyers such as Dallas, Texas-based Tenet Healthcare Corp. also considered bids at the time.

Write to Cynthia Koons at [e-mail]

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