Disclaimer:- The material is
selective and not all inclusive. The extracts do not necessarily
reflect the perspective of the original. No claim is made that all of
the matters referred to are true. The intention is to give the
flavour of the material and an idea of the culture of the
marketplace.
This page gives sources for information about Alpha. These titles and EXTRACTS only. It provides a series of "word bites" from these to suggest the content of each and to illustrate the culture of the marketplace. This is the thinking which increasingly determines the provision of health services in Australia- the treatment individuals are given. Ask yourself whether this is he sort of environment in which we should be caring for the frailty of humanity and for those whose health care luck has run out.
Ask yourself whether the phrases looking a little seedy, having a poor prognosis and looking better used in these reports have anything to do with these citizens and whether the welfare of these unfortunates whom the system is supposed to be helping are a significant concern to the people who are selling them "health care products". Does it reflect the Samaritan ethic and tradition of our civilisation.
Does microeconomic reform improve the health
care of citizens or threaten it? Are the Malaysian and US investors
putting their capital into Alpha Healthcare doing so to serve
Australian's suffering sick or to make as much money as they can out
of them?
Go to
CHANGE OF NAME:
The Australian Financial Review 06 Sep 1992
Alpha Pacific Ltd has advised that it proposes to change the name of the company to Alpha Healthcare Ltd.
COMMENT:- The next article is derived from a telegraphic report dated 31 March 1993, prepared at the American Consulate - Sydney. It discusses planned development projects in New South Wales, Australia. Health care is one of the sectors and the memo reports on projects at the John Hunter Hospital, Nepean Hospital, Royal Prince Alfred Hospital, St George Private Hospital, Bowral private Hospital, and Port Macquarie. (Font and case altered for legibility)
AMCONSUL SYDNEY
IMI: NEW SOUTH WALES MAJOR PROJECT UPDATE
Market Reports April 14, 1993
Copyright 1993 National Trade Data Bank
AUSTRALIA - NSW DEVELOPMENT PROJ
US&FCS Sydney is monitoring major infrastructure projects in New South Wales. Following is a summary of observations and project status developed after a series of meetings with government officials, private sector lawyers, consultants, civil engineers, and financiers. These recent meetings have indicated that in order for U.S. companies to optimize chances of success in major project activity, it is essential to form some sort of partnership with a local company, combined with a long term market strategy. There are many local companies with significant expertise and experience in major project activity. USFCS Sydney is in the process of identifying the local network involved in major projects at the concept, feasibility, design and consortia formation stages so that contact information may be passed on to interested American companies.A The national Perspective.
1. During recent years privatization has moved up the political agenda of Australian federal and state governments. This is taking place through the sale of public assets to the private sector; corporatization of government authorities; commercialization of government departments; contracting out of services previously carried out by government; offering build, own and operate infrastructure assets; and the dilution of former government monopolies by allowing competition.
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- Bowral private hospital: development of a 14 million dollar, 90 bed private hospital on the campus Bowral district hospital in the Southern Highlands - preferred tenderer selected (Alpha Healthcare) and negotiations on draft agreements are currently proceeding.
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- Future health opportunities: the department of health has carried out planning for a range of health services/facilities. The private sector could potentially become involved in the provision of these facilities. These opportunities include: Hawkesbury New Hospital; Liverpool Hospital redevelopment; Prince of Wales/Prince Henry hospital refurbishment.
Comment:- It seems that repaying large debts has long been a problem for Alpha.
WHAT THE BROKERS ARE SAYING
The Sun Herald 04 Sep 1993
ANDREW BROWN, ANZ McCaughan BUY Alpha Healthcare Ltd (8.5c): - - - - - - The company is making sustainable improvements in its profits but remains hamstrung by more than $40 million debt.
ALPHA HEALTHCARE IS BACK ON BOARD
The Australian Financial Review 24 Jul 1994
The shares of private hospital operator Alpha Healthcare Ltd resume trading today, after a technical glitch prompted the Australian Stock Exchange to suspend trading on Friday. Alpha, due to have a $23.5 million new equity raising later this year, completed a capital reconstruction on Wednesday
ALPHA CUTS DEBT AND GETS TAN
The Australian Financial Review 18 Sep 1994
HOSPITAL operator Alpha Healthcare Ltd is cutting its debt and positioning itself to take advantage of increasing opportunities in the private health care market with its $23.5 million public offer that opens today. The offer of 78.5 million shares at an issue price of 30c - - - -
The pacesetter in patient care
Sydney Morning Herald 29 Mar 1995
A HYDROTHERAPY pool, a complex of four operating theatres, and a dedicated staff of healthcare professionals enable the Hunters Hill Private Hospital to maintain high standards.
Alpha Healthcare looking a little
seedy
The Age
Australasian Business Intelligence June 29, 1995
article comments on Alpha Healthcare's share price fall; graph
Healthcare: It's a gamble.
Bulletin with Newsweek, 08/08/95, Vol. 116 Issue 5982, p58, 3p, 1
chart, 3c
Jacques, Bruce
Discusses health care in Australia. Importance of microeconomic factors in the health business; List of Australia's largest private hospital groups and their market share; Financial debacle facing Alpha Healthcare and Australian Medical Enterprises.
------------------------------
-Investors have learned the hard way that microeconomic factors are the crucial variable in many businesses, but especially health-
The Australian advantage -- in The
Bulletin
Australasian Business Intelligence August 29, 1995
Copyright 1995 Business Intelligence Australia Pty Ltd
ABSTRACT: the Australian Stock Exchange has become a magnet for leading conglomerates from Malayasia and Singapore seeking to diversify internationally, reports Russell Baker; companies discussed include Ipoh, Alpha Healthcare, - - - - -
Alpha Healthcare
Australasian Business Intelligence September 12, 1995
SOURCE: Sydney Morning
ABSTRACT: Alpha Healthcare enjoys a 1,265% surge in profit to $A11.3m - - -
Untitled Story
THE SUNDAY TELEGRAPH SUN 04 FEB 1996
This company owns and manages a number of private hospitals and specialist medical and rehabilitation centres, mainly in NSW. The company has recently won a new contract to manage the Hunter Valley private hospital and will manage the new Southern H...
Malaysians buy into Alpha group
Australasian Business Intelligence April 13, 1996
Source: The Age - - - - Christopher Webb
ABSTRACT: the article discusses how Malaysian investors are increasingly becoming interested in Australia's health care industry; Berjaya Group has bought 6,001,500 shares in the Alpha Healthcare group from JP Morgan for 17 cents a share; this is the most recent evidence of Malaysia's interest;
RON`S GPG AT IT AGAIN THIS TIME EYEING
ALPHA.
The Age 01 Aug 1996
SIR Ronald Brierley and his lieutenant Gary Weiss - through the London-registered Guinness Peat Group - have bobbed up on the share register of yet another situation stock in the form of Alpha Healthcare. Guinness has positioned itself as a substanti
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Guiness Peat Group (GPG) has moved to become a substantial shareholder in Alpha Healthcare, with a stake of 5.4%; - - - the stake appears at a time when many shareholders of Alpha are dissatisfied about the severe diminution of Alpha's share price since early 1994; institutional shareholders have not done as badly as a result of the share price's decline, - - -
Alpha continues on acquisition trail
Australasian Business Intelligence August 5, 1996
Business Sydney --- Anita Ward
ABSTRACT: Alpha Healthcare Ltd has gained the Liverpool 24 Hour Medical Centre; this continues Alpha's recent set of acquisitions in New South Wales;
Alpha Asia sale
THE AUSTRALIAN WED 28 AUG 1996
MALAYSIA'S Berjaya Group Bhd will lift its stake in the listed Alpha Healthcare Ltd from 13.1 per cent to almost 20 per cent. Alpha will place 9.55 million shares with Berjaya at 20c to raise $1.9 million, - - - -
Alpha expands rehab centres
Australasian Business Intelligence September 2, 1996
Business Sydney -- - - Anita Ward
ABSTRACT: the article reports that Alpha Healthcare has announced it will open three new occupational rehabilitation centres by the end of 1996; the centres will be operated by Workright, a company which represents the core of Alpha Healthcare's general insurance division; - - - - -
Alpha keeps on growth trail with Malaysian
cash infusion
Australasian Business Intelligence September 16, 1996
Business Sydney - - - -Anita Ward
ABSTRACT: the article reports that Berjaya Group Berhad will increase its shareholding in Alpha Healthcare from 13.1% to almost 20%; the stake will be increased through the placement of 9.55 million shares at A20 cents per share;- - - - - the investment will allow the company to capitalise on opportunities in the Sydney market and commence diverisification and expansion programs
Annual Report 1996
Berjaya Group Berhad - - - - is one of the largest corporations in Malaysia with extensive hospital interests in that country; in addition to a 23% interest in Asia's largest hospital group, the Singapore based Parkway Holdings and a 50% interest in Gribbles Pathology, one of Australia's largest pathology groups/ALPHA FAMILY HEALTHCARE
Ultimately Alpha aims to have a division of approximately 15 medical centres giving Alpha access to 5% of the general practice market in Sydney. Primary healthcare has obvious flow on effects to other medical services, namely pathology, radiology, specialist services and ultimately hospitalisation and is a starting point of all medical treatment in Australia. By vertically integrating primary healthcare right through to hospital services, Alpha will be able to offer patients a full range of services in a completely seamless system.
Alpha zaps into NSW radiology
Australasian Business Intelligence November 27, 1996
The Advertiser - - - Simon Evans
ABSTRACT: the article reports that Alpha Healthcare has acquired a 60% stake in New South Wales-based radiology group Belgrave Diagnostics; Belgrave will become a new operating division of the private hospital group, which is seeking to expand its operations in he bulk-billed diagnostic market; Alpha is controlled by Malaysian companies Tan & Tan and the Berjaya Group; Alpha md Paul Hopper says Belgrave will change its name to the Alpha Imaging Group
Diagnostic push
THE AUSTRALIAN WED 27 NOV 1996
LISTED private hospital operator Alpha Healthcare Ltd has taken a 60 per cent equity stake in radiology group Belgrave Diagnostics to be the cornerstone of a new operating division.
Alpha Healthcare continues moves to
broaden health services operations
Australasian Business Intelligence December 2, 1996
Business Sydney - - - Anita Ward
ABSTRACT: the article reports that Alpha Healthcare has purchased a controlling interest in Belgrave Diagnostics; Belgrave Diagnostics will now change its name to Alpha Imaging Group; - - - designed to assist the company take advantage of the opportunities created by the growth of the bulk billed diagnostic market in New South Wales, which has an annual growth rate of 4%
Boutique hotel feel for
patients
Sydney Morning Herald 16 Apr 1997
A recent $2 million refurbishment has left the Hunters Hill Private Hospital with the most modern equipment and a homely feel, writes SYLVIA LORIMER . WHEN the Prime Minister recently visited the Hunters Hill Private Hospital to see its $2 million refurbishment, he was particularly interested - - -
JAMES HARDIE TO POST S8.10 MLN LOSS FROM
HOSPITAL SALE
ASIA PULSE May 21, 1997
Copyright 1997 Asia Pulse Pte Limited
Building materials company James Hardie Industries Ltd said it would book a 10.5 million (S8.10 million) after tax loss from the sale of its 80 per cent stake in private hospital operator Health Care Corporation (HCC).James Hardie said it has agreed to sell HCC to listed Alpha Healthcare Ltd for around 38 million (S29.33 million) with the sale expected to be completed by June 30.
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The spokesman said James Hardie has been in negotiations to sell its Health Care stake, acquired in 1986, for about three years but offers were not satisfactory.
JAMES HARDIE - SELLS S29.3MLN INTEREST IN
HEALTH CARE
ASIA PULSE May 21, 1997
James Hardie announced today it had signed an agreement to sell its 80% interest in Health Care Corporation (HCC) to Alpha Healthcare Limited, for a total consideration of about 38 million (S29.33 million).
James Hardie loses $10m on HCC sale
Sydney Morning Herald 21 May 1997
Carolyn Cummins Anthony Hughes
Alpha Healthcare has expanded its presence in the industry by paying $38 million for the NSW private hospital operator Health Care Corporation (HCC) from the joint owners James Hardie Industries and Leighton Holdings. James Hardie will book a loss of $10.5 million on its 80 per cent stake.ABSTRACT: (Australasian Business Intelligence)
- - - - Alpha Healthcare will fund the acquisition through debt and equity, part of which will come from a share issue of 103.8m shares; $A15m in equity will be provided to Alpha by Sun Healthcare, which is a US-based group
Alpha to pay $38m for Health Care
Australian Financial Review 21 May 1997
US healthcare operator Sun Healthcare Group is set to gain control of the listed Alpha Healthcare Ltd following Alpha's acquisition of private hospital operator Health Care Corp Pty Ltd. Alpha announced yesterday it would pay $38 million for Health Care Corp, - - - -ABSTRACT: (Australasian Business Intelligence)
- - - - - - the deal will make Alpha the second-biggest private hospital operator in New South Wales; Alpha will fund the purchase via a mix of debt and equity; United States-based Sun Healthcare will pay $A15m for a 38% stake in Alpha, while James Hardie will also have a major stake;
Alpha Healthcare to raise $22.7 million to
acquire Health Care Corporation Pty Ltd
Release to the ASX 21 May 1997
Hardie takes its medicine
THE DAILY TELEGRAPH THU 22 MAY 1997 ---- Emma Blake
JAMES Hardie Industries will book a $10.5 million loss on the sale of its 80 per cent stake in Health Care Corp,ABSTRACT: (Australasian Business Intelligence)
- - - - - Leighton Holdings, a construction company, sold the remaining 20% stake in HCC; HCC total sale price amounted to $A47.5m; consequently, Alpha will now be the second biggest private hospital operator in NSW
James Hardie bales out of HCC - - -
David Moodie
Australasian Business Intelligence May 22, 1997
SOURCE: The Advertiser
ABSTRACT: The article reports that Australian corporation, James Hardie Industries, has found a buyer for its underperforming division, Health Care Corp, - - - - the sale is part of James Hardie's strategy of divesting and restructuring that has so far generated savings of $A520m since 1996; - - - - - the company had been wanting to sell HCC since 1993; the restructuring also includes an expansion of the United States fibre cement and gypsum operations, for $A260m; Baxter predicts growth in America and the Philippines will lead to an improved profit despite slow business in Australia
Hardie to book $A10.5m loss on HCC
sale
Australasian Business Intelligence May 22, 1997
SOURCE: The Courier-Mail
ABSTRACT: - - - - HCC, which has annual revenue of $A35m, had been on the market for three years; it was originally acquired by James Hardie in 1986
Alpha deal will double revenue
THE AUSTRALIAN THU 22 MAY 1997 Andrew White
ABSTRACT: (Australasian Business Intelligence)
- - - the article explains the deal will double Alpha Healthcare's capitalisation and revenue but will return losses for the sellers of Health Care Corp, Leighton Holdings; the article reports the deal also includes a 38% stake hand over in Alpha Healthcare to the United States company Sun Healthcare Group; - - - - the deal is subject to approval by the Australian Foreign Investment Review Board and due diligence by Sun Healthcare Group
Go for the doctor!
Shares June, 1997- - - James Dunn Janelle Carrigan
Alpha is trying to diversify away from a dependence on in patient hospital services, establishing family healthcare - - - radiology divisions ---- buying primary care and general practice centres - - - - bought a pathology business -- and an occupational rehabilitation division.
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Alpha's major shareholder is the Malaysian group Berjaya Group Berhad. This group was the losing bidder for Australian Medical Enterprises in 1995; analysts say its keeness on the industry is not in doubt.
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Since breaking out of a string of losses in 1993-4, Alpha has been profitable.ABSTRACT: (Australasian Business Intelligence)
Medical investments can be excellent for the astute investor; the report is the first of two; part one regards listed health stocks; - - - - - - - medical and health care account for 8% of Australian GDP, reflecting $A40bn; with an aging population, the medical sector is set to grow; influences on the sector include Medicare; the decline in private health insurance directly influences the fortunes of the sector
Sun Healthcare Group to Acquire Interest
in Australian Company
[ PR Newswire] 1997 June 4
Company Press Release
Sun Healthcare Group, Inc. (NYSE:SHG) has announced an intention to acquire a minority interest in Alpha Healthcare Ltd., a publicly traded company that operates private hospitals in Australia. The transaction represents an investment of approximately U.S. $12 million.
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The funds to be invested in Alpha will be used by that company to finance its acquisition of Health Care Corporation Pty. Ltd., a private hospital operator in Australia. That acquisition will position Alpha as the second- largest operator of private hospitals in New South Wales, with 800 beds under its control.``In Australia, the private hospital sector includes what the U.S. nursing home business refers to as subacute care. Therefore, this investment represents an opportunity for Sun to leverage its clinical expertise in an emerging healthcare marketplace,'' said Andrew L. Turner, Sun's chairman and chief executive officer. Sun is currently one of the largest U.S. providers of subacute care in the long-term care industry.
Mr. Turner, who will be appointed to the Alpha board of directors once the transaction is finalized, noted, ``This investment will enable us to learn more about the Australian marketplace, and to continue to expand our ancillary businesses in the international healthcare arena.''
US healthcare giant buys a stake here at
`bargain price'
Australian Financial Review 05 Jun 1997 - - - Sue
Mitchel
US healthcare giant Sun Healthcare Group has established a beachhead in the Australian health industry at a bargain price, according to an experts report on Sun's investment in private hospital operator Alpha Healthcare Ltd. Independent expert PKF Corporate Advisers said Sun's acquisition of a 38 per cent stake unfair because it did not include a premium for the "significant" influence Sun would have over Alpha.
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- - - - attempts (by Alpha) to secure more favourable terms with other potential investors have been unsuccessful.ABSTRACT: (Australasian Business Intelligence)
- - - - the independent expert PKF Corporate Advisers say that the price unfairly does not include a premium for the influence Sun will have over Alpha; PKF did note, though, that without Sun Alpha would not have been able to acquire the private hospital interests of Health Care Corp Ltd; Alpha managing director Paul Hopper believes that the acquisition by Alpha will benefit the company immensely by more than doubling market capitalisation and earnings
Sun Healthcare stake in Alpha.
Wall Street Journal - Eastern Edition, 06/05/97
Abstract: (Business Source Premier ) Reports on plans by Sun Healthcare Group Incorporated to acquire a minority interest in Alpha Healthcare Limited. Factors which prompted Sun Healthcare's decision; Stipulations of the proposed investment.
With a $20m injection, Alpha aims to be a
health-care major
The Australian Financial Review June 6, 1997 - - - Sue
Mitchell
Alpha Healthcare has engineered a dramatic rise in its fortunes, much to the surprise of its competitors, and now the private hospital operator is reaching for higher goals.If Paul Hopper had said 12 months ago he wanted to be one of the largest private hospital operators he would have been laughed out of town.
His company, Alpha Health Care Ltd, ranked well down the list of private-hospital and health-care concerns in Australia and was seen to be undercapitalised, with few prospects for growth.
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Mr Hopper said the HCC deal would not have been possible without the involvement of Sun Healthcare, which may also be called upon to help finance further expansion.ABSTRACT: (Australasian Business Intelligence)
The article discusses the rising fortunes of Australian private hospital operator Alpha Health Care; - - - - - Alpha boss Paul Hopper discusses his company's ambitions, which will be aided by a $A20m capital injection from two new shareholders; the article examines factors such as Alpha's earnings per share, its price earnings multiples, its major shareholders, and the number of hospitals beds it will operate after the HCC deal; the latter is contrasted with the operations of its major rivals
Private health players on rise - - - -
Marion Downey
Sydney Morning Herald 23 Jun 1997
Private health care in NSW is heading for a major shake-up with the entry of Victoria's largest private hospital concern expected later this week. The entry of new bigger players into the NSW market will push forward plans for two major private hospitals in Sydney's west, - - -ABSTRACT: (Australasian Business Intelligence)
The biggest private hospital owner in Victoria, Australian Hospital Care, is preparing to enter the New South Wales private health care market. The entry is expected to see a fast-tracking of the proposals for two major private hospitals in the west of Sydney. It is also expected to see an increase in integrated health care management in the state, which is where one operator owns a variety of health care organisations - such as hospitals and diagnostic services. One of the new private hospitals in Sydney is being built by Alpha Healthcare.
Results of Meeting re Acquisition
Press Release 23/6/1997
The company's shareholders voted overwhelmingly in favour of resolutions necessary to acquire NSW Private Hospital operator Health care Corporation Pty, Ltd - - -
ALPHA HEALTHCARE - HEALTH CARE CORP
ACQUISITION
ASIA PULSE June 23, 1997
Copyright 1997 Asia Pulse Pte Limited
SYDNEY: 23 June 1997 - Shareholders in Alpha Healthcare ("Alpha") today voted overwhelmingly in favour of resolutions necessary to acquire NSW private hospital operator Health Care Corporation Pty Limited ("HCC") from James Hardie Industries and Leighton Holdings for 37.74 million (S28.23 million).
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The Managing Director of Alpha Healthcare, Mr Paul Hopper, said - - - "Importantly, we now have the critical mass to build a significant presence as an integrated healthcare provider in the nation's most populous state which we expect will deliver substantial benefits to shareholders over the longer term.
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"With an enhanced capital base, we believe Alpha is now strongly positioned to benefit from opportunity for growth brought about by the structural changes in the Australian market, in particular, hospital privatisations and co-location projects, in addition to our strong connections in Asia."
Healthy deal for Alpha
Australasian Business Intelligence June 24, 1997
The Canberra Times
ABSTRACT: Shareholders of the Alpha Healthcare group have given their approval for the proposal that the Australian medical services company purchase Health Care Corp for $A37.74m;
Alpha set to buy Health Care Corp - - - -
Anita Ward
Australasian Business Intelligence June 30, 1997
SOURCE: Business Sydney
ABSTRACT: News that Health Care Corporation will be acquired by New South Wales' Alpha Healthcare in June 1997, was met with enthusiasm and support by shareholders of the private hospital operator. The acquisition was worth $A37.74million, with American Sun Healthcare Group becoming the largest shareholder in Alpha by investing $A15million. Alpha is set to be a strong presence in NSW's hospital sector
Completion of Consolidation of
Shares:-
Release 14 July 1997
- - consolidation of f.p. ord. shares on a one for five basis - - - 20c sheres were consolidated to - - - $1.00 shares
Victoria seeks cure in private
Australian Financial Review 24 Jul 1997
The Victorian Minister for Health, Mr Rob Knowles, headed north of the border yesterday to enlist the help of Sydney's private health care community to assist in Victoria's efforts to revamp its public hospital system.
Extension by vendors of completion date of
sale to 15/8/97
Release 31 July 1997
- - this will enable the Foreign Investment Review Board to complete its examination of Sun healthcarre - - -
Alpha deal on ice after approval snag- - -
Mark Jeanes
The Financial Review 31 July 1997
- - - purchase of Health Care
Corporation Pty Ltd has been delayed after the Foreign Investment
Review Board raised concerns over the involvement of American health
care giant Sun Healthcare Group Inc.
-----------------
- (FIRB)- - has baulked at reports that the Civil Division of the US
Department of Justice was investigating the billing practices of
Sun's subsidiaries.
------------------
Executives from Sun have visited Canberra to from the US in recent
days in order to smooth things over with the review board.
------------------
The FIRB had previously been alerted of investigations being made by
the Criminal Division of the Department of Justice.
ABSTRACT: (Australasian Business
Intelligence)
- - - - However, Australia's Foreign Investment Review Board has
expressed concern over the involvement of United States-based Sun
Health Group Inc. - - - - The FIRB is said to be concerned about
reports that the billing practices of Sun's subsidiaries are being
examined by US legal authorities.
Completes Healthcare Corporate
Acquisition
Release 18 August 1997
- - - Settlement follows Foreign Investment Review Board approval of a $15 million investment in Alpha by Sun Healthcare
Sun gets nod for 38pc stake in Alpha
Australian Financial Review 18 Aug 1997
The Foreign Investment Review Board has approved US health giant Sun Healthcare taking a 38 per cent stake in Alpha Healthcare Ltd, allowing Alpha to finance its $39 million takeover of private hospital operator Health Care Corporation Ltd. The deal was delayed late last month when the FIRB baulked after discovering that the Civil Division of the US Justice Department was investigating the billing practices of one of Sun's subsidiaries.But the deal was given approval on Friday after Sun returned with more information about the investigations at the FIRB's request.
"It was very straightforward. Sun provided everything that was asked and more" the managing director of Alpha, Mr Paul Hopper said last night.
ALPHA HEALTHCARE LTD -COMPLETES HEALTHCARE
CORP ACQUISITION
ASIA PULSE August 19, 1997
Alpha to forge ahead with Westmead Co-location Project SYDNEY: 18th August, 1997
-----------------------
Settlement follows Foreign Investment Review Board ('FIRB') approval of a 15 million (S11.04 million) investment in Alpha by Sun Healthcare Inc ('Sun') as part of the funding of the 38.74 million (S28.51 million) acquisition of HCC.
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The Managing Director of Alpha Healthcare, Mr Paul Hopper said that with the acquisition settled, the company would now forge ahead with its plans for building a 44 million (S32.38 million) tertiary care 140-bed hospital to be strategically co-located by the Westmead Public Hospital campus, in Sydney.
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. Sun Healthcare Group, Inc Headquartered in Albuquerque, New Mexico, Sun Healthcare is the third largest provider of contract rehabilitation, the sixth largest nursing home operator, and one of the largest subacute care providers, in the USA. The Company is listed on the New York Stock Exchange and has a market capitalisation of approximately 1.0 billion (S740 million) with total sales of 1.6 billion (S1.18 billion) for the year ended 31 December 1996.
Sydney firm buys hospital
Illawarra Mercury 21 Aug 1997
Illawarra Private Hospital has been sold to a Sydney-based company as part of a $38.74 million buy-up in which three private hospitals to the south-west of Sydney changed hands this week. Alpha Healthcare Limited completed acquisition of NSW private hospital operator Health Care Corporation
Alpha appoints Sun's Turner as
director
Reuter Aug 25 1997
Hospital operator Alpha Healthcare Ltd said on Monday it had appointed Andrew Turner as a director.
Preliminary Final Report - Financial Year
Ended 30/06/97
Release 8 Sept 1997
Sales up 20% - - announced a 35% increase in operating profit before tax and abnormal items - -
---------------
The new financial year will see annual revenues more than double to $90.0 million - - -
Business Review Weekly, Monday, 08 Sep 1997
With public hospitals facing a troubled future, one merchant bank believes the next step will be privatisation. - - - - - the transition will not be easy Bankers Trust Investment Bank is gearing up for a revolution in Australian health care.
Comment:- The following piece comes 6 months after Columbia/HCA was rejected by Australia.
Hospital sale sparks access fears
The Age, Monday, 29 Sep 1997
The State Government's privatisation of a second key country hospital has renewed warnings of an American-style health system that would restrict public access to health care. The Government has announced the Mildura Base Hospital will be replaced.
COMMENT:- In the following piece which reads like an advertorial Alpha which until now has been a bit player, one which has made a remarkable advance assumes the mantle of the establishment in order to promote its expansion into Asia.
Alpha healthcare expands patient benefits
through quality Service
Asian Business Review, Oct97, p60, 1p, 2c
Alpha Healthcare is not only one of Australia's top private healthcare providers, they now plan to provide even higher standards of service to their patients.No longer content with being one of the top two private sector healthcare providers in New South Wales, Sydney-based Alpha Healthcare is now keen for Asian patients to benefit from its fine facilities and expertise.
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The company's 1500 healthcare professionals deliver a broad range of surgical, medical, day-only and psychiatric hospital services and it is also Australia's largest provider of private rehabilitation healthcare.Taking time talk to ABR, Mr Hopper explained there were primarily two factors that could differentiate private hospitals from their competitors. Firstly the care they gave their patients, and secondly the speed with which they could get them back to work With its emphasis on training, Alpha has been able to do both these, plus capitalise upon Australia's renowned nursing expertise - 90% of its staff are nurses.
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Training is such an important factor at Alpha and Mr Hopper stresses to all employees that if the Company is to continue to grow and prosper, they must maintain their focus on quality and high standards.All of Alpha's hospitals have achieved three year Accreditation, an independent quality benchmark, which helps ensure that optimum performance is an everyday occurrence throughout its facilities.
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Alpha's rehabilitation program is aimed at getting patients back to work as quickly as possible.
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Alpha is therefore one of Australia's most professional, respected and successful healthcare companies. And one which is not content to rest on its laurels, but rather seeks to build upon its success by expanding into Asia.Shareholders in Alpha Healthcare will see this expansion program underwrite growth in earnings per share, dividends and ultimately the company's share price.
Appoints Project Finance Advisor for New
Westmead Hospital
Release 2 Oct 1997
- - - appointed bankers Trust to advise on securing project finance for its Westmead Private Hospital, a $40 million project - -
BRIEFS: Alpha to raise $40m
Australian Financial Review 02 Oct 1997
Alpha Healthcare Ltd announced yesterday that it had appointed Bankers Trust as adviser in securing $40 million to finance construction of the company's Westmead Private Hospital in Sydney's west.
Healthy profits. Private hospitals thrive
as funds raise fees - - - - Sue Dunlevy
THE DAILY TELEGRAPH WED 08 OCT 1997
A MASSIVE increase in private hospital profits last financial year has emerged as one of the factors driving up private health insurance premiums. Private hospital groups have reported increases in profits of between 15 and 138 per cent - -ABSTRACT: (Australasian Business Intelligence)
During the 1996-97 financial year Australia's private hospitals boosted their profits by as much as 138%. During the same financial period health funds were forced to raise the value of their premiums. These price raises were the result of an increase medical health care costs. Alpha Healthcare made a net profit of $A2.01m during the financial year. - - - - - The success of the private hospital companies has been attributed to their ability to attract consumers who would have normally used the medical services offered by public hospitals
Alpha appeals to investors to fund
Westmead Private - - Anita Ward
Australasian Business Intelligence October 13, 1997
SOURCE: Business Sydney
ABSTRACT: Alpha Healthcare has appointed Bankers Trust as its advisor in its quest to raise the $A40 million needed to fund its proposed 136 bed medical and surgical Westmead Private Hospital - - - Bankers Trust executive vice president, Mary Reemst, says the public health industry is a major growth area which is increasingly attracting investors, as demonstrated by the listing of Ramsay Health Care on the Australian Stock Exchange in September, 1997 with a market capitalization of more than $A200 million
HEALTH
Business Review Weekly, Monday, 27 Oct 1997
The financial crisis in health services deepened during the year, and most health enterprises reported a loss. Worse still, the overall net loss reported for the health and community services sector has blown out to $309 million from $139 million a year - -
Annual Report 1997
The report describes the purchase of HCC and the investment of Sun Healthcare. Entities owned and reported on include:-
- HOSPITALS:- Berkeley Vale, St Edmunds Private Hospital, Hunters Hill Private Hospital, Lawrence Hargrave Hospital, Mt Wilga Private Hospital, The South Highlands Private Hospital, The illawara Hospital, Bankstown Private Hospital, Charles Wentworth Private Hospital all in NSW, and the Perth Surgicentre in Western Australia
- ALPHA FAMILY HEALTHCARE:- Auburn, Marrickville, Gosford, and Liverpool
- PATHOLOGY - Australlian Diagnostic Laboratories in Western Sydney
- RADIOLOGY Alpha Imaging Group
- OCCUPATIONAL REHABILITATION -- WORKRIGHT
MAIN SHAREHOLDERS
- Sun Healthcare --------------------------- 35.7%
- Tan & Tan Developments ----------------- 8.83%
- RCI Pty Ltd ---------------------------------- 8.78%
- Berjaya Group Equity (Cayman) Ltd --- 5.57%
- Healthcare Holdings (cayman) Ltd ----- 4.09%
After the refurbishing of Hunters Hill Private Hospital
We were delighted to have as our guest The Honourable John Howard, Prime Minister of Australia to officially open the last of the new works and tour the hospital in March 1997
Alpha Westmead Project Underway
Release 11 November
- - - set for a construction start in March 1998, - - -
Alpha Healthcare's strategy calls for
further acquisitions
Australasian Business Intelligence December, 1997
SOURCE: Shares
ABSTRACT: Australian company Alpha Healthcare plans further expansion, following the recent acquisition of Health Care Corp. Managing director Paul Hopper says each of his company's divisions (hospitals, family healthcare, pathology and radiology) is looking for acquisitions at present. - - -
Acquisition of Pathology Business now
wholly owned
Release 2 Dec. 1997
- - - acquired the interest of minority shareholders in its pathology business - -
Acquisition of Diagnostic Pathology
Release 4 Dec 1997
- - - Alpha has agreed to acquire Diagnostic pathology, a Category One pathology laboratory based in Ryde, Sydney. - -
--------------------
"The acquisition is another step in the strategic development of Alpha as an integrated healthcare provider in the primary health care, diagnostic, imaging, and occupational rehabilitation markets."
$10 M Unsec. Loan finance -- plans for
conv. Note issue
Release 11 Dec 1997
- - - major shareholder Sun healthcare Group Inc has provided $10 M loan financing to Alpha unsecured. To part-finance a number of proposed acquisitions in pathology and radiology services. Alpha will seek shareholder approval to convert the loan into a two year convertible note issue - - -
Market prepares for a healthy
injection
Business Review Weekly 15 Dec 1997
The health-care sector, which has enjoyed strong recent gains, is about to be expanded markedly with a string of new offerings. Investors will be deluged by health-care offerings over the next 12 months, including the first listed hospitals property trust.
Size is all that matters to prosperous
Alpha - - - Emily Carr
Australasian Business Intelligence December 12, 1997
SOURCE: The Australian Financial Review
ABSTRACT: Alpha Health Care, an Australian private hospital operator, has recently obtained a loan worth $A10m. This money was provided by Sun Healthcare Group Incorporated, a United States-based company. This company is Alpha Health Care's biggest shareholder. The money will be used to acquire Diagnostic Pathology, a New South Wales-based company. A portion of the funds will also be used to buy a radiology firm. Alpha Health Care is to seek shareholder support to convert the loan into a convertible note issue. This issue would boost Sun Healthcare's shareholding stake in the company from 10% to 49%
Substantial Shareholder
Release 17 Dec 1997
Berjaya Group Equity (Cayman) Ltd decreased its relevant interest in Alpha Healthcare - - from - - (10.34%) to - - (2.88%)
Wooldridge injects $500 m for reform
Courier Mail 18 Dec. 1997
The Commonwealth will offer the states $500 million in extra funding to trigger a health revolution that would see fewer people using hospitals.Under radical plans unveiled last night, federal Health Minister Michael Wooldridge will offer states cash incentives to move away from traditional hospital-based care and toward innovative models of health care.
- - - - - - - - includes a $500 million capital fund to pay for construction of "health halfway houses" for people not sick enough to be in hospital but not well enough to be at home.
The so-called step down facilities would cost less because care would be less intensive.
Dr. Wooldridge said the facilities would reduce the cost of treating some patients, while clearing hospital beds for acute cases and reducing waiting lists.
Media Release re Southern pathology
Acquisition
Release 19 Dec 1997
Alpha Healthcare ('Alpha') announced today that it is to acquire a 100 percent interest in Southern Pathology, the leading pathology laboratory in the Illawarra region, where Alpha has two hospitals.
Settlement of Southern Pathology - -
-
Release 22 Dec. 1997
- - - completed settlement of the acquisition of Southern Pathology and it has also acquired the minority interests in Alpha Imaging Group, both businesses are now wholly owned.
Change pays off for Alpha
Healthcare
Australasian Business Intelligence January, 1998
SOURCE: Shares
ABSTRACT: Australia's Alpha Healthcare has significantly changed the size and nature of its business. Although it began as a small operator of rehabilitation hospitals, in January, 1998, its business structure now comprises only 35% of its original business, with the other 65% being made up of acute surgical care. It has acquired three major New South Wales private hospitals, and is developing the 136-bed Westmead Hospital. Alpha Healthcare managing director, Paul Hopper, says the company intends expanding into pathology, radiology and general practice to help offset any further turbulence in the private health insurance industry. He says the pathology services, once acquired, will operate under the Australian Diagnostic Laboratories name. Meanwhile, Alpha Healthcare has reported higher margins resulting in increased profits
Alpha shops for pathology groups
Australasian Business Intelligence February 2, 1998
SOURCE: Business Review Weekly
ABSTRACT: In December, 1997, Australian private-hospital operator Alpha Healthcare purchased the New South Wales (NSW) Illawarra region's Southern Pathology Group. Alpha aims to expand to become Australia's leading private healthcare provider in pathology, radiology, surgery, rehabilitation, and medical and psychiatric services. Paul Hopper, Alpha managing director, has also announced the acquisition of Diagnostic Pathology in Ryde, NSW. Major shareholders of Alpha are Sun Healthcare, AMP, and National Australia Asset Management. Hopper claims that the client base has grown from 500 to 2000 during 1997 and that the bulk-billed pathology market in NSW is worth $A300m per year.
Alpha invests in Victorian home health
care service - - - Amber Daines
Australasian Business Intelligence February 9, 1998
SOURCE: Business Sydney
ABSTRACT: In February, 1998, the Sydney-based company in New South Wales, Alpha Healthcare will take a 10% interest in Silver Circle which is Australia's primary provider of home support services. Alpha expects to increase its stake to 25% during 1998/99 and managing director Paul Hopper, claims that Alpha will be the first major hospital and primary health care group "to provide a holistic private health care service". Silver Circle was founded in 1991 and serves about 8,000 clients, mainly in Victoria, and Alpha's investment is a way for it to enter the Sydney market. Gerry Naughtin, CEO claims that Silver Circle will be able to develop new services. Hopper believes that the health care market will be worth $A1bn by 2005
Alpha Healthcare Shareholders Endorse
Convertible Note Issue
Alpha Healthcare Limited Press Release 18 February
1998
Alpha Healthcare ("Alpha") today announced shareholders had endorsed the issue of a A$10 million two year Convertible Note to Sun Healthcare Group Inc ("Sun"), convertible at $1.10 per share and carrying a coupon rate of 5.5 percent per annum. Conversion of the note would increase Sun's holding in Alpha by just over 10 percent to 49 percent.The Managing Director of Alpha Healthcare, Mr Paul Hopper, said: The Note issue will result in interest savings of $500,000 per annum before tax for two years compared to the current Sun loan which was used to conclude recent key acquisitions.
"This enhancement of our capital base and interest cover, strengthens Alpha's ability to pursue its ambitions to be a leading integrated healthcare provider.
----------------------------
"These develpoments have been accompanied by increased institutional support as we have come to be seen as a strong, well resourced competitor in the market place." said Mr Hopper.Mr Chet Bradeen, Sun Healthcare's representative on the Alpha Board, said that with the strengthened capital base resulting from the Note issue, Alpha was well placed for further expansion.
Multi-million dollar sale of Southern
Pathology
Illawarra Mercury 25 Feb 1998
Southern Pathology, the Illawarra's largest private pathology laboratory, has been bought out by Alpha Healthcare, the same company that last year purchased The Illawarra Private and Lawrence Hargrave hospitals.
Alpha shops for pathology groups
Australasian Business Intelligence March 1, 1998
SOURCE: Shares
ABSTRACT: Private-hospital operator, Alpha Healthcare, has acquired the Illawarra region's Southern Pathology Services. The purchase was completed in December 1997 as part of Alpha's objective to become one of Australia's leading healthcare providers of pathology, radiology, surgery, rehabilitation, and medical and psychiatric services. In December 1997, Alpha managing director, Paul Hopper, announced that the company would acquire all the equity in Diagnostic Pathology in Ryde, New South Wales (NSW). AMP Limited bought 1.5 million shares in Alpha in December. National Australia Asset Management is also a significant shareholder. According to Hopper, the bulk-billed pathology market in NSW is worth $A300m a year and is growing at about 12%.
Hospital operator cautious on gains - - -
Emily Carr
Australasian Business Intelligence March 5, 1998
SOURCE: The Australian Financial Review
ABSTRACT: Australian private hospital operator, Alpha Healthcare, has doubled its net profit for the first-half in 1997-98 from $A1.1 million to $A2.2 million, but is still wary of the future. Alpha gains half its total annual revenue from Australian health insurance funds, which are struggling under continually dropping membership.
Alpha up 100pc
THE AUSTRALIAN THU 05 MAR 1998
MEDICAL services group Alpha Healthcare remained cautiously optimistic about full-year profit after announcing a lift in half-year net profit of 104 per cent yesterday.
Hospital operator cautious on gains
Australian Financial Review 05 Mar 1998
The dire state of Australia's private health insurance industry has prompted a cautious full-year outlook from private hospital operator Alpha Healthcare. The group announced yesterday that its interim net profit for the six months to December 31 had doubled, - - -
Mixed prognosis for health care
Sydney Morning Herald 13 Mar 1998
The $2.1-billion listed private health care sector will come under more pressure in the year ahead when the fragmented industry adjusts to falling income as fewer people take up private health insurance.
Sun Healthcare Group, Inc. Acquires German Ancillary Service Provider; Sun Also Forms Australian Pharmacy and Medical Supply DivisionsPR Newswire May 5, 1998 - - - ALBUQUERQUE, N.M
In a move to continue the global expansion of its operations, Sun Healthcare Group, Inc. (NYSE: SHG) today announced it has acquired PROCEDO Stocker GmbH, a privately held German supplier- - - -
------------------
In another transaction, Sun Healthcare Group, Inc. has formed Australian divisions of its SunScript and SunChoice subsidiaries.The new divisions, based in Sydney, will provide pharmacy services and medical supplies to both affiliated and nonaffiliated long-term care facilities and hospitals in Australia. Affiliated facilities include the operations of Alpha Healthcare Ltd. and Moran Health Care Group Pty Ltd. Sun acquired a 38 percent interest in Alpha and a majority interest in six Moran hospitals in 1997.
Kevin Hendry will serve as managing director for SunScript and SunChoice in Australia.
Sun Healthcare Expands Overseas
Presence
Albuquerque Journal May 06, 1998
Sun Healthcare Group Inc. announced Tuesday it has bought a German medical supplier and created new Australian divisions of two subsidiaries.
--------------------------
Sun also formed new divisions of its SunScript and SunChoice subsidiaries in Australia. They are pharmacy and medical suppliers.
-----------------------
Although she could not give specifics about company plans, Gilliland said more growth is expected."We're always expanding," she said.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION 15/5/98 TO 24/8/98
Sun 10-Q15 May 98
In January 1995, the Company learned that it was the subject of a pending Federal investigation. The investigating agencies are the United States Department of Health and Human Services' Office of the Inspector General ("OIG") and the United States Department of Justice. At this time, the Company does not know the full scope of the investigation. However, the Company currently believes that the investigation is focused principally on whether the Company provided and billed for unnecessary or unordered therapy services to residents of skilled nursing facilities and whether the Company adequately documented the therapy services which it provided.In July 1997, the Criminal Division of the U.S. Department of Justice informed the Company that it had completed its investigation of the Company, and that it would not initiate any actions against the Company or any individuals. The investigation by the Civil Division of the Department of Justice and the OIG is still proceeding. The government continues to collect information, and the Company continues to cooperate with the investigators.
-------------------------
On or about January 23, 1996, two former stockholders of SunCare, John Brennan and Susan Bird, filed a lawsuit (the "SunCare Litigation") against the Company and certain of its officers and directors in the United States District Court for the Southern District of Indiana. Plaintiffs allege, among other things, that the Company did not disclose material facts concerning the investigation by the OIG and that the Company's financial results were misstated.
--------------------------
On September 8, 1995, a derivative action was filed by Brickell Partners against certain of the Company's current and former directors and officers in the United States District Court for the District of New Mexico, captioned BRICKELL PARTNERS V. TURNER, ET AL.
----------------------------
The Company was notified in 1997 by a law firm representing several national insurance companies that these companies believed that the Company had engaged in improper billing and other practices in connection with the Company's delivery of therapy and related services.
Alpha hospital projects delayed
Australian Financial Review 27 May 1998
Alpha Healthcare Ltd warned yesterday that delays on two key projects would cause second-half profit to be lower than the first half, but said it remained confident full-year earnings would exceed those of 1996-97 by about 60 per cent.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun 10-Q/A 22 May 98
In 1996, the Connecticut Attorney General's office and the Connecticut Department of Social Services ("DSS") began an investigation and initiated a hearing in order to determine whether the Company's long-term care subsidiary submitted false and misleading fiscal information on its 1993 and 1994 Medicaid cost reports.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun 10-K/A 22 May 98
In May 1997, the Company received court approval of the $24.0 million settlement of certain class-action shareholder lawsuits captioned IN RE SUN HEALTHCARE GROUP, INC. LITIGATION which amount was previously paid during the fourth quarter of 1996. The plaintiffs alleged that the Company and certain current and former directors and officers misrepresented or failed to disclose material facts about the OIG investigation and about the Company's operations and financial results.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun S-4/A 2 June 98
Between August 25, 1997 and October 24, 1997, ten putative class action lawsuits (the "Actions") were filed in the United States District Court for the Northern District of Georgia on behalf of persons who purchased Retirement Care's common stock, naming Retirement Care and certain of its officers and directors as defendants. The complaints allege violations of Federal securities laws by the defendants for disseminating allegedly false and misleading financial statements for Retirement Care's fiscal year ended June 30, 1996 and its first three quarters of fiscal year 1997
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun 10-Q/A 22 May 98
In addition, the OIG recently published a report, based on a limited review of patient records in six unidentified long-term care facilities in California, that found that between 4% and 80% of therapy services were medically unnecessary in such facilities.
-----------------------------
The Company is unable to determine at this time when the investigation (federal) will be concluded, how large a monetary settlement the government may seek, the nature of any other remedies that may be sought by the government, whether or when a settlement will in fact occur or whether any such settlement or any other outcome of the investigation will have a material adverse effect on the Company's financial condition or results of operation
------------------------------
In 1996, the Connecticut Attorney General's office and the Connecticut Department of Social Services ("DSS") began an investigation and initiated a hearing in order to determine whether the Company's long-term care subsidiary submitted false and misleading fiscal information on its 1993 and 1994 Medicaid cost reports. Since 1997, the investigation has also covered information for the 1995 cost year as well as cost reporting periods prior to 1993. The information under review includes submissions and representations by the long-term care subsidiary and the Company's chief executive officer. The evidentiary phase of the hearing has concluded.
Stocks hold firm
THE SUNDAY TELEGRAPH SUN 14 JUN 1998
ALTHOUGH the All Ordinaries index dipped below the 2600 barrier this week our portfolio is still up over all for the year. The stock market took a beating and some of our stocks lost the healthy gains made so far this year.
ABSTRACT: (Australasian Business
Intelligence)
- - - - Two stocks to be hit hard during the week were Biota Holdings
Limited and Alpha Healthcare.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun S-3 31 July 98
Because of operating and financing constraints resulting from acquisitions and internal growth, there can be no assurance that Sun will have adequate cash or borrowing capacity and other resources to compete effectively for future acquisitions or will be able in the future to continue to engage as actively in acquisitions as it has in the past, and uncertainties regarding reimbursement rates for therapy, the outcome of the government investigation of Sun's rehabilitation therapy subsidiary or a material reduction in such rates could limit internal growth of Sun's therapy business.SUBSIDIARIES
Sun Healthcare Group --- August 1998
------------------------
SUN HEALTHCARE GROUP INTERNATIONAL, LTD.
----------------------------
Australia: Interests in Alpha Healthcare, Ltd., which operates 10 acute care facilities and majority interest in six acute care facilities operated by Moran Health Care Group, Ltd.
Alpha Westmead Private Hospital :: Alpha
Healthcare secures final approvals and financing for new Alpha
Westmead Private Hospital $50 million Westmead Co-location Project to
commence September 1998
Alpha Healthcare Limited Press Release 4 August 1998
Alpha Healthcare ("Alpha") today announced that it had now secured final regulatory approvals and project financing for its Alpha Westmead Private Hospital, a $50 million project to provide a 136-bed tertiary acute surgical and medical hospital adjacent to the Westmead Public Hospital campus in Western Sydney.
--------------------------------
"The project will be wholly owned by Alpha through a special purpose subsidiary and project financed by way of a non-recourse loan from the ANZ Banking Group of $35 million together with financing of $18.4 million from Alpha's major shareholder, Sun Healthcare Inc. On completion of the project in early 2000, the Sun facility is planned to be repaid from proceeds of a capital raising."
-------------------------
"In addition to the Alpha Westmead Private Hospital, we have a number of opportunities to acquire further healthcare businesses under active consideration", said Mr Hopper.
Alpha Healthcare secures hospital
financing
AAP NEWSFEED August 4, 1998, Tuesday
SYDNEY, Aug 4 AAP - Alpha Healthcare said today it had secured final regulatory approval and project financing for its $50 million Alpha Westmead Private Hospital project.The project will provide a 136 bed tertiary acute surgical and medical hospital adjacent to the Westmead Public Hospital campus in Western Sydney.
--------------------------
It will be financed by way of a non-recourse loan from the ANZ Banking Group of $35 million together with $18 million from Alpha's major shareholder, Sun Healthcare Inc.
BRIEFS: Alpha's $50m venture
Australian Financial Review 05 Aug 1998
Alpha Healthcare Ltd yesterday secured final regulatory and finance approval for its $50 million Westmead private hospital project in western Sydney. The project will be funded by a $35 million non-recourse loan from ANZ and $18.4 million from Alpha's major shareholder, Sun Healthcare.
Alpha gets go-ahead for planned $50m
hospital in western Sydney
Australasian Business Intelligence August 24, 1998
SOURCE: Business Review Weekly
ABSTRACT: In August 1998 Alpha Healthcare is planning the construction of a private hospital in Sydney, New South Wales. The company says there is strong demand for more private hospital facilities in Sydney and its Alpha Westmead facility will go some way to meeting this demand.- - - - - A capital raising in 2000 will repay the loans.
Federal Minister for Health launches Alpha
Healthcare's Westmead Private Hospital
Alpha Healthcare Limited Press Release 9 September
1998:
At a ground breaking ceremony today, the Federal Minister for Health and Family Services, Dr. Michael Woolridge, launched the construction by Alpha Healthcare Limited ("Alpha") of its $55 million 136 bed Westmead Private Hospital.The new hospital is co-located with and adjacent to Westmead Public Hospital in Western Sydney and is scheduled to be operational by mid-2000. The project consolidates a major investment by Alpha in NSW.
-----------------------------
The Westmead Private Hospital project is wholly owned by Alpha through a special purpose subsidiary with project financing provided by Alpha's major shareholder, Sun Healthcare Inc. and the ANZ Banking Group.Looking ahead, Mr Hopper said the investment fundamentals of the private healthcare continued to be dynamic.
"There are opportunities ahead as governments seek to increasingly involve the private sector, either through co-located projects, or contract management of existing and new public hospitals.
-----------------------
Since hospital operations began in 1989, Alpha has grown from being a relatively small rehabilitation based private hospital operator to be the second largest private hospital group in NSW, following last year's acquisition of the three former HCC hospitals and the Westmead site from the James Hardie group.
Alpha says cautiously optimistic
AAP NEWSFEED September 14, 1998
Alpha said it is pursuing further business acquisitions in the pathology and radiology sectors as part of its strategy to reduce its primary reliance on private health insurance for revenues, from 95 per cent two years ago, to approximately 55 per cent at present time, amongst the lowest in the industry.The group said it will continue to devote resources to participate in the Victorian government's hospital privatisation program, in addition to examining selective stand alone, private hospital acquisitions which meet its investment criteria.
-------------------------
"This together with strong support from our major shareholder, Sun Healthcare Inc, places Alpha in a very strong position to continue our expansion strategy."
Alpha says cautiously optimistic for
1998/99
AAP NEWSFEED September 14, 1998, Monday
"We intend taking further advantage of continuing rationalisation of the hospital and pathology sector," Alpha's managing director Paul Hopper said."As evidenced by our success in securing the new Mildura Base Hospital, we anticipate further opportunities to participate in the provision of public health services, and in the development of private facilities, especially co-locations."
-----------------------------
An abnormal loss of $1.34 million was charged against the operating profit relating to the write off of the group's exposure to Bowral Management Company Pty Ltd which manages the Southern Highlands Private Hospital.Directors decided not to pay a final dividend "in view of the significant capital projects which the company has on foot", including the Alpha Westmead Private Hospital and the Mildura hospital.
BRIEFS: Health care group improves
The Age 15 Sep 1998 - - HELEN SHIELD
Alpha Healthcare yesterday reported a heady 52per cent rise in1997-98 net profit - - - - - . However, the 1997-98 net profit of $3.05million, up from $2.01million in 1996-97, failed to impress the market. The shares ended steady yesterday at 61cents. Analysts said they were concerned about the group's decision to record the $232,000 cost of losing the tender for the MBF Hospital Division as an abnormal loss instead of taking it above the line.
Alpha thinking big after robust 52pc
rise
Australasian Business Intelligence September 15, 1998
SOURCE: The Australian
ABSTRACT: - - - During the 1997-98 financial year the company expanded its net profit earnings rate by 52% up to $A3.05m. - - - - - During that financial year the company posted abnormal loss of $A1.34m. This figure related to costs associated with the write-down of its investment interests in Bowral Management. Alpha Healthcare will not provide its shareholders with a final dividend payout light of the company's decision to proceed with a number of capital projects
Briefs: ALPHA HEALTHCARE
Australian Financial Review 15 Sep 1998
Directors have omitted the final dividend "in view of the significant capital projects" under way.
Health fear on US link to hospital
Australasian Business Intelligence September 17, 1998
SOURCE: Herald Sun - - Jen Kelly
ABSTRACT:
On 17 September 1998, plans to privatize the Mildura Hospital have met with opposition by a local lobby group. Mildura Hospital Action Group's chairman Ross Douglass said that Mildura residents are particularly wary of foreign owners. The action group believes that Mildura needs a new hospital, but not a private hospital. A group led by Alpha Healthcare Limited, whose major shareholder is the US health company Sun Healthcare Group, plans to build, own and operate the 139-bed New Mildura Base Hospital. Alpha Healthcare already runs five hospitals in New South Wales, and anticipates that the New Mildura Base Hospital will generate $A30m a year
Alpha begins construction of new private
hospital in Western Sydney
Australasian Business Intelligence September 18, 1998
SOURCE: Business Sydney - - Dominique Antarakis
ABSTRACT: An Australian private healthcare provider has continued its expansion of recent years. Alpha Healthcare has commenced construction of its new 136-bed hospital in Western Sydney.
Alpha looking better
Australasian Business Intelligence September 20, 1998
SECTION:
SOURCE: Sunday Telegraph
ABSTRACT: - - - - - -That represents an increase of nearly 100% - - - -. The Australian healthcare organisation recorded an abnormal loss of $A1.34m because of its investment in Bowral Management Co. This company is the manager of the Southern Highlands Private Hospital.
Alpha gets go-ahead for planned $50m
hospital in western Sydney
Shares 01 Oct 1998
Alpha Healthcare has received final regulatory approval and project financing for its $50 million Alpha Westmead private hospital in western Sydney.
Health care looks set for better results
following poll
Australian Financial Review 13 Oct 1998 - - - Robert
Guy
The re-election of the Coalition could see the subdued health-care sector produce solid returns for investors in the future.ABSTRACT: (Australasian Business Intelligence)
- - - - It is believed that the Government's policy of increasing rebates to people using private health insurance will lead to greater private health insurance membership as an alternative to Medicare
Funds crisis: private hospitals now
thinking public
Australian Financial Review 14 Oct 1998
The private hospital system is trying to cut back on its dependence on private health funds by embarking on joint projects with public hospitals, and contracting out its services. Private hospitals are seeing their source of funds shrink - as the health funds suffer declining membershipABSTRACT: (Australasian Business Intelligence)
Australian private hospital operators are being driven to reliance on public funds as private health funds shrink. Ramsey Health Corporation Ltd says its reliance on private funding has fallen to 43%. Australian Hospital Care Ltd, Mayne Nickless subsidiary Health Care of Australia, Ramsey and Alpha Healthcare Ltd are pursuing co-location joint ventures with public hospitals to gain greater access to private funds. Health sector analyst for BT Alex Brown, Ray Bright, who previously worked as ceo of the South Australian Health Commission, says public hospitals need investment to redevelop so are looking to arrangements with private providers. Part of a special report on "Health Care"
State contract a boost for Alpha's
expansion plans
Australasian Business Intelligence October 19, 1998
SOURCE: Business Review Weekly
ABSTRACT: Alpha Healthcare will build, own and operate the new 139-bed Mildura Base Hospital. The Victorian Government selected Alpha Healthcare, which has a significant market share in the private health sector in New South Wales. - - - - The Victorian Government will acquire Alpha's services on a service-fee basis, mainly for operating costs, a return on equity, the purchase of equipment and maintenance costs
HALT HOSPITAL SALE, SAYS
OPPOSITION:
THE HERALD-SUN: 19 Oct 1998 BY ELISSA HUNT
ABSTRACT: (Australasian Business Intelligence)
The Victorian Opposition has called on the Victorian Government to delay the privatisation of Mildura Hospital. Alpha Healthcare was announced as the preferred operator of the hospital during September 1998. The largest shareholder in Aplha Healthcare is Sun Healthcare. Victorian shadow health minister, John Thwaites, says Sun healthcare has been investigated by the US Justice Dept and the US Dept of Health & Human Services. General manager of corporate projects of Aplha Healthcare, Craig Jones, says Sun Healthcare's investment in the company has been investigated and approved by the Foreign Investment Review Board. The US investigation did not result in charges being laid
TANDARD & POOR'S DOWNGRADES SUN
HEALTHCARE GROUP; OUTLOOK NOW NEGATIVE:
PR NEWSWIRE World Reporter Oct. 20 1998
Standard & Poor's today lowered its ratings on Sun Healthcare Group Inc. and its unit, Sun Financing I, reflecting operating weakness. In addition, Standard & Poor's revised its outlook on the company to negative from stable.
-----------------------------
Moreover, given the company's heavy debt burden, financial flexibility is rather limited.
Mildura hospital firm in US probe
The Age 28 Oct 1998
A company linked to the privatisation of the Mildura Hospital was under investigation in the United States for "improper conduct", independent MP Russell Savage told Parliament yesterday. Mr Savage said the American company Sun Healthcare had been under investigation by the US Federal Government - - -ABSTRACT: (Australasian Business Intelligence)
On 27 October, 1998, Russell Savage, an independent member of the Victorian Parliament stated that Sun Healthcare was under investigation. This company was being investigated by the Government of the United States and the state of Connecticut. It has been claimed that the company lodged false or misleading financial information with respect to Medicaid costs.
Premier attacked over hospital tender
row
Australasian Business Intelligence October 30, 1998
SOURCE: Herald Sun - - - Kristin Owen
ABSTRACT: On 29 October 1998, the Victorian Premier, Jeff Kennett, was accused of misleading the Victorian Parliament. On 27 October 1998, the Victorian Parliament heard that the Victorian Government's preferred tenderer for the Mildura Base Hospital, Alpha Healthcare, has a US shareholder, Sun Healthcare Group, that is being investigated by Connecticut authorities. Kennett said that the investigation has ceased. On 29 October 1998, the Victorian Deputy Opposition leader, John Thwaites, said that the Connecticut authorities have confirmed in writing that the investigation of Sun Healthcare is ongoing
Alpha negotiates hospital purchase
Australasian Business Intelligence October 30, 1998
SOURCE: Business Sydney - - - Dominique Antarakis
ABSTRACT: An Australian hospital fund is set to be wound up, and its major asset to be sold. The Australian Healthcare Investment Fund (AHIF) was established in 1995 in order to build the Southern Highlands Private Hospital in New South Wales in conjunction with Alpha Healthcare. AHIF (which is managed by Tyndall Funds Management) has leased the hospital (operated by Alpha) to Bowral Management (of which Alpha owns a 50% stake). The continuing unprofitability of the hospital has prompted Tyndall to wind up the fund and offer the hospital to Alpha for $A5 million
GST: a healthy profit outlook
Australasian Business Intelligence November, 1998
SOURCE: Shares - - - Robert Gottliebsen
ABSTRACT: The Australian Government proposes the introduction of a goods and services tax in 1998. The investment prospects of industries affected by this tax are examined. - - - - - Major changes are predicted to occur in the private health sector, since investment stocks for private hospitals have suffered as a result of declining numbers of members of private health funds. - - - - - - - strong future earning potentials are predicted for Alpha Healthcare, although there is a possibility of a takeover by its major shareholder the Sun Corporation.
Profits in takeover targets
Australasian Business Intelligence November 1, 1998
SOURCE: Sunday Telegraph - - - Keith Gosman
ABSTRACT: Brent Mitchell from Shaw Stockbroking says that there are around 25 companies on the Australian Stock Exchange which are takeover targets. - - - Some potential targets are Alpha Healthcare, - - -
ALA ALPHA HEALTHCARE Annual Report
AAP NEWSFEED November 10, 1998
TOP TWENTY SHAREHOLDERS AS AT 28/09/1998NAME .................................................... NO.OF ORDINARY SHARES HELD
Health bidder in US tax probe, says
Labor
The Age 10 Nov 1998
Furniture for private use, luxury car leases, overseas trips and a ``Murder by Invitation" function were all claimed as taxpayer rebates by the company now bidding for a slice of Victoria's privatised hospital system, according to the State Opposition. The Opposition has called on the Government
VIC: Questions raised over Mildura
Hospital bidder
AAP NEWSFEED November 11, 1998
The Victorian Opposition today increased pressure on the government over the privatisation of Mildura Hospital, pointing to evidence of poor patient care by the preferred bidder's parent company.Opposition health spokesman John Thwaites told parliament there had been a series of incidents at centres run by the US-based company Sun HealthCare, including the rape and pregnancy of a comatose woman at a rehabilitation centre in Lawrence, Massachusetts.
Sun - - - - is also under investigation in Connecticut for allegedly providing misleading financial returns.
-----------------------
The paper also said authorities recommended public health funding be withdrawn from a Sun centre in Randolph, Massachusetts, after two patients died in six months after being given incorrect medication.An aide from another home in Wilmington, Delaware, was charged with mistreating patients earlier this year, including forcing one to eat her own faeces and slapping and spitting on others.
-----------------------------
"There is continuing probity (checking) by the health department into the preferred bidder ... until the process is completed no contract will be signed," he (Premier Jeff Kennett) told the house.
-----------------------
But Mr Thwaites told AAP the probity investigation was inadequate because it was being conducted "in secret"."The government should do an open investigation into Sun's performance in the USA and whether the Victorian government was fully informed," he said.
"There is already sufficient evidence to disqualify this company from being given a Victorian public hospital to run."
ALA - Chairman's AGM Address to
Shareholders
Australian Associated Press November 30, 1998
Chairman's AGM Address to Shareholders - BARRIE MARTIN
This has been a busy year which saw the company substantially expand its hospital operations with the acquisition of the three former Health Care Corporation hospitals and selective expansion into ancillary healthcare services.
---------------------------
As a result, operating revenue more than doubled to $ 88.95 million (up 108 percent).
--------------------------
Importantly, we have seen a significant enhancement in the diversity of our earnings, with fifty-five percent of our revenue now being funded by private health insurance compared with over eighty percent two years ago.We also saw the introduction of Sun Healthcare Inc as a major shareholder and subsequent strengthening of our capital base.
-----------------------
The second major initiative was seeking appointment as preferred tenderer for the new privatised 139-bed Mildura Base Hospital to be developed under a fifteen-year build-own-operate contract. We are delighted to have won that tender against formidable competition, however we cannot give a firm timetable for the project until the Victorian Government has completed a probity check on Alpha and Sun Healthcare, our major shareholder. Whilst probity clearance has been approved on Alpha, checks on Sun Healthcare are continuing.Other acquisitions have included a Sydney based X-Ray service, a strategic holding in a Victorian based home case service, Silver Circle and we have also consolidated our holdings in the pathology industry.
We now enter a capital-intensive phase as we work towards bringing Westmead on-line, and later, Mildura Base Hospital. Both projects have been fully financed by the ANZ Bank and the Sun Healthcare Group.
In light of these capital commitments Directors have decided not to pay a final dividend.
-------------------------
In all, last year was one characterised by uniquely high growth.
-------------------------
Now I hand you over to Mr Paul Hopper for the Managing Director's Review ...(M.D.'s Presentation) Paul A Hopper MANAGING DIRECTOR
It will come as no surprise that our caution was well founded. As shareholders will be aware from the warning contained in the annual report, the Company expects a difficult trading environment in 1998-99.
-----------------------
Private hospitals have not fared well during the first quarter, particularly in New South Wales - - - -. Nationally, private health insurance is at an all time low with only 30.0% of the population covered.
-------------------------
In addition to the industry wide softness which has affected the Hospital Division, we have encountered some higher than expected costs in the integration of the Liverpool and Ryde pathology businesses.
-------------------------
As a result of the downturn in the Hospital Division and parts of the Pathology Division, the 1998-99 first half profit will be significantly lower than the corresponding period in 1997-98.- - - - our 50% owned joint venture management company, Bowral Management Company Pty Limited - - -has now been placed in Voluntary Administration. - - - - - Given BML's ongoing trading losses, Alpha's continued support could not be justified. Alpha may record an abnormal loss from its investment in BML as a result of previous commitments of support to BML.
-----------------
Nonetheless we expect the full year profit picture will be lower than that achieved last year.
ALA ALPHA HEALTHCARE LIMITED
AAP NEWSFEED November 30, 1998
ASX Company Announcement
Alpha Healthcare Limited advises that its 50% owned associate company, Bowral Management Company Pty Ltd (BML), has today appointed Mr K.W. Skinner end Mr C.R. Campbell of Deloitte Touche Tohmatsu as Voluntary Administrators to that company. - - - due to previous commitments of support from BML shareholders (including Alpha), an abnormal loss may be incurred
AHF: AUSTRALIAN HEALTHCARE INVESTMENT
FUND
AAP NEWSFEED December 2, 1998
ASX Company Announcement
On 21 October 1998 we advised the market that Alpha Healthcare Limited had made an indicative offer to purchase the Southern Highlands Private Hospital. - - - - - Alpha Healthcare Limited has now withdrawn its indicative offer
Health tender raises concern
The Age 07 Dec 1998
A company linked to the privatisation of the Mildura hospital has been banned from running any more nursing homes in California after a series of violations that endangered patients' health. - - -
VIC: Bidder for Mildura Hospital under a
cloud in US
AAP NEWSFEED December 7, 1998
An American company linked to the privatisation of Mildura Hospital had incurred several fines in California for putting patients' health at risk and had a nursing home licence revoked, the state opposition said today.Opposition Health spokesman John Thwaites, who has previously raised concerns about Sun Healthcare, said the company could not be trusted to run a Victorian public hospital.
---------------
In December last year, the California Health Services Department revoked Sun's licence to operate the Mission De La Casa Nursing Home in San Jose after it was repeatedly fined for patient care violations, Mr Thwaites said.Sun, the major shareholder in Alpha HealthCare which is the preferred bidder, was fined a total of $53,000 for 10 incidents of patient violations in the year from November 1996.
"The last fine on 18 November 1997 totalled $30,000 and was an "A" type violation, which means there is imminent danger to patients' health," Mr Thwaites said.
The company was told by the Californian department late last year it would not receive future licences until it demonstrated appropriate care could be provided in its current facilities.
Mr Thwaites also said at least four lawsuits had been filed against Sun for patient abuse at the Fountainview Nursing Home in Sacramento, alleging wilful misconduct, intentional infliction of emotional distress, negligence and one case of wrongful death.
The latest revelations again showed the government's "so-called probity investigation" for the Mildura Hospital privatisation was a joke, he said.
Mr Knowles said the probity checks had taken longer than normal because it involved an American company but they were within weeks of completion.
------------------------
He has also revealed the company is under investigation in the state of Connecticut for submitting false and misleading information to get payments from Medicaid - the US equivalent of Medicare.
State bidder linked to snag in US
Australasian Business Intelligence December 7, 1998
SOURCE: Herald Sun - - - Kristin Owen
ABSTRACT: United States (US) corporation Sun Healthcare has been refused a licence to operate a nursing home in California (in the US). California's Department of Health must be "fully satisfied" that Sun can provide adequate patient care at its facilities before it will issue a licence to Sun. This poses a dilemma for the Victorian Government as Sun is connected to a bid by Alpha Healthcare for the licence to run the Mildura Hospital (Victoria). Alpha is the preferred bidder, but the Victorian Minister of Health, Rob Knowles, concedes that the Victorian Department of Health has to complete its due diligence checks at which time it will become known whether Sun and Alpha will officially gain the contract
Alpha Healthcare Draws on Sun for
Financing and Plans Convertible Note Issue to Consolidate Loan
Alpha Healthcare Limited Press Release 23 December,
1998
Alpha Healthcare ('Alpha') today announced major shareholder Sun Healthcare Group Inc ('Sun') has provided A$4.75 million loan financing to Alpha, to meet the ongoing working capital requirements of the Group.Alpha will seek shareholder approval to convert the loan into a two year convertible note issue with a coupon rate of 12% p.a., convertible into fully paid ordinary shares at $0.62. Baron Partners has been commissioned to produce the Independent Expert's Report on the proposal ahead of the required Shareholders' Meeting.
----------------------------
Mr Hopper said that the ultimate conversion of this proposed note would, on Alpha's current issued capital, increase Sun's holding in Alpha by just over 6.5 percent to 55.4 percent, assuming its existing $10 million note was also converted in December, 1999. Foreign Investment Review Board consent would need to be obtained prior to the notes being converted.
Alpha pulls out of Aust hospital
project
AAP NEWSFEED December 23, 1998, Wednesday
Alpha Healthcare Ltd said it has pulled out of a major Victorian hospital project after a government review of its major US stakeholder.Alpha today advised the Victorian Government it will not proceed with constructing and operating the Mildura Base Hospital.
----------------------------
Managing director of Alpha Healthcare Paul Hopper said the decision to withdraw from the Mildura project was based on government advice it was not satisfied with the results of a review of Alpha's major shareholder, Sun Healthcare Group of the United States.Alpha said it believed the government's advice and review process was based on incomplete information and influenced by premature conclusions that were inaccurate and unfairly prejudicial to both Sun and Alpha.
VIC: Mildura privatised hospital plans hit
snag
AAP NEWSFEED December 23, 1998
Krista Hughes and Andra Jackson
The Victorian government's plans for a new privatised hospital in Mildura suffered a setback today when the lead bidder pulled out, blaming unfair treatment from the Kennett administration.Alpha Healthcare was forced to pull out of the project when its major shareholder, the US-based Sun Healthcare Group, withdrew its financial backing, after a state government review of Sun's operations.
Sun's Australian managing director Chet Bradeen said a campaign of misinformation by the state opposition had turned the tender process into a political issue.
It had been clear from the government's "tone" in requesting information about unsubstantiated opposition claims of poor patient care and false Medicare invoices that it thought the issue was too hot to handle, he said.
---------------------------
"I think the government, in my view, has not treated Sun fairly and the facts fairly, and I think it's had a detrimental affect on Alpha because we've been a shareholder, and I think Alpha's been dragged down in the process," he told AAP.
-------------------------
Alpha managing director Paul Hopper said he believed the review - which is still incomplete - was influenced by premature conclusions.
-------------------------
Health Minister Rob Knowles said the government would now have to choose between reserve bidders Ramsar Healthcare and Epworth Hospital to get the hospital built by the target date of early 2000.He blamed Alpha's withdrawal on the opposition's "smear campaign", saying the government was disappointed, but understood the companies wanted to "maintain their very high credibility".
--------------------------
"It was totally inappropriate for the Kennett government to go ahead and appoint Alpha as the preferred bidder for the Mildura Hospital privatisation, before carrying out proper probity checks," he said.
Smear campaign blamed for Alpha's Vic
hospital pull-out
AAP NEWSFEED 23 Dec 1998
Andra Jackson
Health Minister Rob Knowles told reporters today: "They advised us that they were withdrawing for commercial reasons relating to the on-going smear campaign that was being conducted, and their desire to maintain their very high credibility."
-----------------------
He said there was nothing wrong with Alpha Healthcare Ltd, the company nominated as the preferred proponent for the project - part of the government's policy of ushering private companies to build hospitals in Victoria - last August."But one of their major shareholders, with the potential to become the controlling shareholder, has been the subject of accusations and a smear campaign by the State Opposition."
-------------------------------
The Health Minister said another reason for the project delay had been waiting for the probity audit to be completed on the Sun Healthcare Group, Alpha's major America shareholder.
-----------------------
It was "a mammoth task given the size of the company" and is still not completed.
----------------------------
"So the federal government's body has cleared them and one assumes the NSW Labour Government is happy with them as they have agreed to co-locate a hospital between Alpha and one of their major public hospitals."
VIC: US health group blames govt for
Mildura pull-out
AAP NEWSFEED December 23, 1998
The US-based Sun Healthcare Group said today it pulled out of the race to build and run a new privatised hospital in Victoria because of the state government's handling of the issue.
-------------------------------
Sun, which owns 38 per cent of Alpha, said it had been the target of a campaign of "misinformation" in recent months, and believed the government had been swayed by political pressure to frown on Alpha's bid.Australian managing director Chet Bradeen said claims by the state opposition that Sun had been banned from running nursing homes in California and had a poor record of patient care were without foundation.
"Situations like that, where we've provided the information, the government has, I don't think been able to evaluate in an accurate way just how the opposition has misused that information and we've been judged as guilty before proven innocent," he told AAP.
US giant abandons bid for Mildura
hospital
The Age 24 Dec 1998
The United States nursing home giant Sun Healthcare has pulled out of its bid to build and operate the Mildura Hospital, accusing the State Government of being naive and bowing to political pressure. But the Health Minister, Mr Rob Knowles, blamed the Opposition and some Mildura locals for Sun's withdrawal.ABSTRACT: (Australasian Business Intelligence)
A US company has withdrawn its bid to build and operate the Mildura Hospital. The US giant Sun Healthcare has withdrawn saying it was the subject of a political smear campaign. Details of the failed bid were published on 24 December 1998. Sun Healthcare is the major shareholder in the Australian-based bidder, the Alpha Healthcare consortium. The Labor Opposition had revealed that damaging allegations had been made about Sun Healthcare in the US. It also revealed that Sun Healthcare had been banned from running any more nursing homes in California after patient care violations. It revealed that there had been three unnatural deaths at Sun nursing homes in the past year.
Hospital bidder pulls out
Australasian Business Intelligence December 24, 1998
SOURCE: Herald Sun - - - - Kristen Owen
ABSTRACT: On 24 December 1998, Alpha Healthcare has withdrawn from its position as a front-runner to operate a new Victorian hospital. Alpha's move comes as its principal backer, the US-based Sun Healthcare has withdrawn support for the Mildura Base Hospital bid, blaming the Victorian government's handling of the bid. Alpha is blaming pressure from anti-privatization groups. The Victorian Government Minister for Health, Rob Knowles, said a smear campaign run by the Victorian Opposition against Sun has forced Alpha to pull out
US firm quits project, blasts Kennett
THE AUSTRALIAN THU 24 DEC 1998
A US corporation yesterday attacked the Kennett Government, saying that it would have to "re-evaluate" whether it should do business in Victoria. Sun Healthcare's attack came after the company withdrew from a consortium set to build and operate the - - -ABSTRACT: (Australasian Business Intelligence)
A US company has withdrawn from a key healthcare project in Victoria. Sun Healthcare has withdrawn from a consortium that was about to build and operate the Mildura Private Hospital. The company attacked the Victorian Government of Jeff Kennett on 23 December 1998. Sun Healthcare fired a parting shot saying it would reconsider ever doing business in Victoria again. - - - - the Labor Opposition had raised a political storm over Sun Healthcare, alleging that its US companies were being investigated for fraud and a series of violent incidents including patient deaths. The Victorian Government was running probity checks on Sun Healthcare
Half Yearly Result to 31st December
1998
Alpha Healthcare Limited Press Release
The Board of Alpha Healthcare Limited today announced an operating loss after tax and abnormal items of $1.781 million ($2.243 million profit December 1997). No dividend is declared.The loss of $1.781 million was after charging an abnormal expense of $0.944 million incurred on the Group's successful tender for the privatisation of the Mildura Public Hospital in Victoria, from which Alpha subsequently withdrew following an investigation by the Victorian Government into the affairs of Alpha's major shareholder, Sun Healthcare of the United States.
--------------------------
Directors were disappointed in the operating performance of the Group, the results being below plan in a difficult environment particularly for health insurance. Alpha welcomes the introduction of the 30% rebate and expects benefits will flow through during the second half.
----------------------------
Our Primary Care Division, occupational rehabilitation (Workright) and Radiology Divisions made sound, although modest contributions.Whilst our Pathology Division contributed approximately $12.5 million in revenue, its profit performance was most disappointing during the period primarily as a result of integration and management challenges at our Ryde laboratories, producing a return not keeping with its market value. As a result, subsequent to 31st December 1998, the Group capitalised on a buoyant market for pathology businesses and sold the division to Sonic Healthcare at a profit of approximately $6.0 million which will be brought to account in the second half.
-------------------------
In light of the difficult industry conditions, the Board has instigated a major cost reduction program across all activities in the Group. - - - - - As a result of these redundancies, in excess of $0.75 million has been eliminated from the Group's overheads. At facility level, cost review programmes are underway, and these initiatives are expected to enhance results during calendar 1999.
----------------------
The Board is considering a number of strategic initiatives in related fields which will build on our existing expertise and which are not capital intensive.
Substantial Profit as
Alpha Healthcare exits Pathology Division
Alpha Healthcare Limited Press Release 21 January,
1999
The directors of Alpha Healthcare Limited ('Alpha') today announced they had completed negotiations for the acquisition of Alpha's Pathology Division by Sonic Healthcare Limited. The transition is now unconditional and settlement is expected on Saturday 23 January 1999.
-------------------
Announcing the decision to exit its pathology services, Alpha's Managing Director, Mr Paul Hopper said "the resolution to accept an extremely attractive offer was taken after a comprehensive review of the growth prospects for pathology in New South Wales, which Alpha concluded were narrow for Alpha given the critical mass of its competitors, Sonic and Mayne Nickless, and the competitive prices being paid to increase market share through acquisition".
-----------------------
The transaction will reduce Alpha's debt to equity ration from 130% to 85% and will increase net tangible assets from around 59c to approximately $1.06 per share."Notwithstanding Alpha's strategy to widen the revenue base outside the traditional private hospital business, Directors believe the opportunity to significantly reduce the borrowings of the Group and thereby enhance the balance sheet, plus a divestment price well in excess of book value only two years after our entry into pathology, could not be refused." Mt Hopper said.
Alpha sells off pathology arm
The Age 22 Jan 1999 - - - Helen Shield
Alpha Healthcare is to sell its pathology business to the rival Sonic Healthcare for an estimated $35 million.ABSTRACT: (Australasian Business Intelligence)
- - - - Alpha's managing director, Paul Hopper, predicted poor growth prospects for Southern Pathology Services and Australian Diagnostic Laboratories. Alpha will use the proceeds of the sale to retire debt. - - - - - Alpha has experienced tough trading times over the past six months GRAPHIC: photograph
Sound deal by Sonic
Australasian Business Intelligence January 22, 1999
SOURCE: The Australian Financial Review
ABSTRACT: Australian firm Sonic Healthcare Ltd is acquiring the pathology business of Alpha Healthcare Ltd on January 21, 1999. Alpha will use the proceeds of the deal to pay off 60% of its $A35m in borrowings, - - -
Private predators
Australasian Business Intelligence January 26, 1999
SOURCE: The Bulletin - - - Bruce Jacques
ABSTRACT: The $A1.7bn rebate scheme passed in the Australian parliament in 1998 should boost membership of private health insurance funds in 1999. However, despite Australia's $A45bn annual health expenditure, listed health stocks are performing poorly. - - - Private hospitals which appear vulnerable include Australian Hospital Care, Healthscope, Alpha and Sonic. Only Mayne Nickless and Ramsay Health Care seem safe. Potential predators include large overseas health care groups and Mayne, which has made over $A1bn from the sale of its interest in Optus. - - -
Alpha pulls out of Mildura Hospital
Australasian Business Intelligence January 29, 1999
SOURCE: Business Sydney - - - Dominique Antarakis
ABSTRACT: Alpha Healthcare Limited has withdrawn its tender for the construction, ownership and operation of the Mildura Base Hospital in Victoria. Alpha's managing director, Paul Hopper, says that the decision was based on Victorian Government advice that Alpha's major shareholder, Sun Healthcare Group Incorporated, had not satisfied the review process. Alpha's subsidiary, Bowral Management Company Pty Ltd, has had to place the Southern Highlands Private Hospital under voluntary management
Sonic Healthcare buys Alpha pathology
Australasian Business Intelligence January 29, 1999
SOURCE: Business Sydney - - - - Dominique Antarakis
ABSTRACT: Alpha Healthcare Limited has sold its pathology divisions to Sonic Healthcare Limited. Paul Hopper, managing director at Alpha, says that the sale will allow Alpha to divest itself of 60% if its $A35 million debt, including the $A4.75 million owed to major shareholder, Sun Healthcare Group Incorporated. Hopper said that the attractive offer and opportunity to reduce borrowings could not be refused. - -
Notice of Extraordinary General Meeting
for 26/2/99
AAP NEWSFEED March 12, 1999
Your Directors have resolved to call an Extraordinary General Meeting on 26 February, 1999 to seek approval to issue a A$4.75 million convertible note to Alpha's largest shareholder, Sun Healthcare Group Australia Pty Ltd ("Sun")
------------------
If the proposed note is converted over the next 24 months into fully paid shares in Alpha ("shares"), Sun's holding in Alpha will rise to 47.4%. If in addition to this conversion, Sun exercise as rights of conversion under their existing A$10 million convertible note, Sun's holding in Alpha would rise to 55.4%. On 30 December 1998, Sun lent to Alpha A$4.75 million to enable Alpha to fund loan facilities which had reached expiry.
--------------------
- - - - - the approval of the above mentioned unassociated shareholders will also be sought to the issue of up to 7,661,290 shares to Sun, this being the maximum numbers of shares it would be entitled to have allotted and issued to itself if it elected to convert all of the debt represented by the convertible note into shares.
--------------------
- - - in this instance directors recommend the issue of the convertible notes at that level given that it is supported by the current share price and enabled the prompt refinancing of borrowings which had reached maturity date. Your directors, - - unanimously support approval of both the resolutions set out in the Notice.
Alpha Healthcare Result of Extraordinary General Meeting
Alpha Healthcare Limited Press Release 26 Feb 1999
The Directors of Alpha Healthcare Limited today announced that at an Extraordinary General Meeting held on 26 February 1999, shareholders voted in favour of the two resolutions relating to the issue of a convertible note and subsequent allotment and issue of shares to Sun Healthcare Group Australia Pty Limited.
HEALTHCARE SETBACK
THE AUSTRALIAN FRI 12 MAR 1999
MEDICAL services group Alpha Healthcare Ltd has posted a net first-half loss of $1.78 million but expressed optimism with benefits expected in the second half from the Government's health rebate.
Sun Healthcare form 10-K filing to the US Securities and Exchange Commission (SEC) on March 31,1999:EDGARPlus(R) FORM-TYPE: 10-K FILING-DATE: March 31, 1999
EXTRACT ONLY of Australian interests
- Sun Healthcare Group, Inc.) ....................................Australia
- Sun Healthcare Group Australia Pty Limited....................Australia
- Alpha Healthcare Limited (38.2% interest)...................Australia
- Sun Moran Healthcare Group Australia Pty Limited.......... Australia
- Greenway Park Developments Pty Limited*.....................Australia
- The Carmichael Private Hospital Pty Limited*................Australia
- Shellharbour Private Hospital Pty Limited*..................Australia
- Biggs Street Private Hospital & Clinic Pty Limited*.........Australia
- Yalandl Pty Limited*........................................Australia
- Sun Healthcare Holdings Pty Limited...........................Australia
- Promedica Pty Limited.......................................Australia
- * 99.9% interest held by Sun Moran Healthcare Group Australia Pty Limited and .1% interest held by Sun Healthcare Group, Inc.
Southern Highlands Private Hospital
Alpha Healthcare Limited Press Release 06/04/99
Alpha Healthcare Limited ("Alpha") today announced that its 100% owned subsidiary Bowral Management Company Pty Limited ("BML") has been advised by National Mutual Trustees Limited, that BML's revised offer to manage and operate the 90 bed private co-located surgical, medical and rehabilitation hospital at Bowral in the Southern Highlands of NSW, had been accepted.
Alpha sees profit from management of
hospital
AAP NEWSFEED April 6, 1999, Tuesday
A revised offer by Alpha's subsidiary, Bowral Management Company Pty Ltd (BML) to manage and operate the 90 bed private surgical, medical and rehabilitation hospital was accepted today by National Mutual Trustees Ltd.
As a result of the change, the hospital was expected to be cash flow positive and contribute a small profit, compared to the previous arrangements where BML was losing more than $700,000 per annum.
IN BRIEF TIP FOR INTEREST RATES: NO
CHANGE
The Canberra Times April 7, 1999,
SYDNEY: Alpha Healthcare Ltd expects the Southern Highlands Private Hospital in NSW to be cash-flow positive after the hospital group renegotiated a management contract.
SHAREMARKET ACTION
Sydney Morning Herald 08 Apr 1999
SONIC BOOM Private hospital operators may be struggling because of the dwindling amount of health care insurance taken out but parts of the industry reliant on Medicare rebates are soaring. Pathology group Sonic Healthcare has risen 63 per cent since the beginning of January - - -
ASX Announcement
Alpha Healthcare Limited Press Release 09/04/99
The Directors of Alpha Healthcare Limited ("Alpha") today announced that the Company and Group's Managing Director, Mr Paul Hopper has agreed that the term of his contract (until July 2000) would not be completed.
-------------------
Moving forward, Mr Martin announced that "Mark Compton, currently General Manager - Hospitals would be promoted to Chief Operating Officer and Neil Hooper, currently General Manager - Finance & Administration would be promoted to Chief Financial Officer.Both Mr Compton and Mr Hooper would report directly to Mr Graham Wright, currently a Non-Executive Director of Alpha, but who has agreed to act as Chief Executive Officer as an interim appointment whilst the company considers permanent arrangements for the management of the Group".
Alpha Healthcare appoints Managing
Director
Alpha Healthcare Limited Press Release 25/05/99
STOCK EXCHANGE AND MEDIA ANNOUNCEMENTThe Directors of Alpha Healthcare Limited are pleased to announce the appointment of Mr Mark Compton as Managing Director and Chief Executive of the Company.
Mr Compton, who has been with Alpha since 1994 was recently appointed Chief Operating Officer. Prior to that he had been responsible for the Alpha Pathology Division and then, the Hospital Division.
---------------------------
The appointment will be effective from 5th July 1999. Mr Graham Wright will continue as Acting Chief Executive Officer until that date.
BRIEFS
Australian Financial Review 26 May 1999
Alpha changes:- Struggling hospital operator Alpha Healthcare Ltd is discussing a range of options with private health funds in a bid to improve margins, new managing director Mr Mark Compton said yesterday. Mr Compton, who has been chief operating officer, will take over as managing director - - -
Horse to put field to sword
Illawarra Mercury 29 May 1999
Trainer Kim Moore reckons she's still learning about five-year-old Excalibur, nominal favourite for today's featured Alpha Healthcare Class Three Plate (1200m) at Kembla Grange.
COMMENT:- Given the extensive information now available about Sun's US conduct and concerns about standards of care in its US facilities one must ask whether the need for FIRB approval had anything to do with the decision below. (see need for in press release 23 Dec 1998)
Alpha Healthcare - Cancellation of
Convertible Note to Sun Healthcare Group
Alpha Healthcare Limited Press Release 29 June 1999
At an Extraordinary General Meeting held on 26 February 1999, Alpha's shareholders voted to approve the issue of a Convertible Note to Alpha's major shareholder, Sun Healthcare Group.
---------------------------
Sun and Alpha have now agreed to amend the original loan agreement, and not to issue this convertible note. The new agreement provides for Alpha to repay the $4,750,000 in full, by 31 December 1999.
Alpha Healthcare - Cancellation of
Convertible Note to Sun Healthcare Group
Alpha Healthcare Limited Press Release 29 June 1999
STOCK EXCHANGE AND MEDIA ANNOUNCEMENT
Sun and Alpha have now agreed to amend the original loan agreement, and not to issue this convertible note. The new agreement provides for Alpha to repay the $4,750,000 in full, by 31 December 1999.
Unhealthy business
Australasian Business Intelligence July 1, 1999
SOURCE: The Age - - - Christopher Webb
ABSTRACT: Some listed healthcare stocks have been among the worst performers on stock exchange lists. Alpha Healthcare is still finding the going tough. Alpha reported a $A837,000 loss for the first half of 1999, with acting chief executive Graham Wright having to inform the market that second-half results will be no better than booked by the halfway mark. Wright and his company have stated they are cutting costs and that these measures will return the group to profits, but did not estimate dollar values
Alpha feels the heat
Australasian Business Intelligence July 30, 1999 Friday
SOURCE: The Sydney Morning Herald - - Anthony Hughes
ABSTRACT: On 29 July 1999, some of the financial pressure on Alpha Healthcare was revealed. Its United States parent, Sun Healthcare Group - which 38% of Alpha - holds a $A4.75m, 12% convertible note that has to be repaid in full by 31 December, 1999. Alternatively, Sun can convert it into shares at $A0.62 each - when the shares are trading in July, 1999, at around $A0.29. Alpha also faces pressure from an aspect of its May, 1997 purchase of Health Care from James Hardie Industries. As part of the deal, Alpha received a $A12m interest-free loan from Hardie - repayable by August, 2000. Its current market capitalisation is only that amount
Year End Financial Result to 30 June
1999
Alpha Healthcare Limited Press Release 10/09/99
Alpha Healthcare today announced a net loss after tax and abnormal items of $21.256m.
------------------
There has been a re-structuring of senior positions, including the appointment of a new Managing Director, Mark Compton. He and the rest of the Senior Management Team are re-focusing the Company's efforts to align, more closely, with its core competencies. Costs have been substantially reduced and this, in conjunction with the new operational focus, has seen a significant upturn in recent months' results. Approximately $1.0m in salary costs at an executive level alone has been removed in the last few months.
-----------------------
Announcing the results, the Managing Director, Mark Compton said "Whilst the results for 1998/99 were very disappointing, the position going forward is very much more positive.- - "
-----------------------
"In addition, Alpha is pursuing new business opportunities and is developing our existing non-hospital businesses to capitalise on our existing strengths without requiring large capital investment."Our cost reduction programme throughout the Group is already having a tangible impact and at the same time, greater management focus is increasing occupancy at a number of facilities. We still have some underperforming business units, however these problems are being addressed as a matter of urgency.
---------------------
"I am confident that Alpha has 'weathered the storm' and is now well positioned to start delivering enhanced value to shareholders," Mr. Compton said.
Alpha can't beat a tough environment - - -
Sue Mitchell
Australian Financial Review 11 Sep 1999
Difficult conditions in the private hospital sector were underlined yesterday when struggling hospital operator Alpha Healthcare Ltd announced a shock $21.2 million loss.ABSTRACT: (Australasian Business Intelligence)
Australian private hospital operator Alpha Healthcare Ltd recorded a $A21.2 million loss on September 10, 1999. The shock loss represented an operating loss of $A2.1 million, plus abnormal losses of $A19.2 million. In the previous year, the company had recorded a profit of $A3.06 million. Alpha stated that trading conditions in the private hospital sector were difficult at this point of time, and that some recently acquired businesses had not performed as well as they had been expected to do. Sales had risen by 8.3 % to $A94.3 million. Alpha shares remained unchanged on September 10 at $A0.265
Recovery a way off for hospital operators
- - - Anthony Hughes
Sydney Morning Herald 13 Sep 1999
ABSTRACT: (Australasian Business Intelligence)
- - - They (Mayne Nickless, Ramsay Health Care and Alpha Healthcare) are suffering and their management is under fire after disappointing profit results due mainly to the cost squeeze applied to them by the private health insurance funds that fund the hospitals. However, health care companies specialising in pathology (such as Sonic) or medical centres (such as Primary Health Care) are some of the sharemarket's best performers, along with drug companies such as CSL and Biota. In fact, investors have fled from the private hospital sector and do not look like returning for some time
Profit as Alpha Healthcare divests
radiology
Alpha Healthcare Limited Press Release 07/10/99
The Directors of Alpha Healthcare Limited ("Alpha") announced today that they had executed contracts for the divestment of Alpha's Radiology Division to Mayne Nickless Limited. Settlement will occur in the week-ending 15th October 1999.The transaction includes the existing Alpha radiology practices and in addition, the rights to operate a comprehensive radiology practice in Alpha's Westmead Private Hospital.
"The proceeds will be used as repayment of debt," Mr Compton said.
"This sale will have a positive effect on Alpha's performance by divesting a poorer performing entity from the Group's portfolio and reducing interest costs. In addition this will allow us to concentrate more attention on our core businesses, which continue to improve" Mr Compton said.
Mayne radiology purchase saves Alpha's
skin
Australasian Business Intelligence October 8, 1999
SOURCE: The Age - - - Anthony Hughes
ABSTRACT: Alpha Healthcare announced on 7 October 1999 that Mayne Nickless will buy its radiology division. Managing director of Alpha, Mark Compton, said that radiology and pathology are performing better in terms of big numbers. Alpha has struggled in 1999, with a falling share price and serious debt.
COMMENT:- Note below that radiologists working in Westmead private hospital will have a primary loyalty to Mayne Nickless and the other staff will have a responsibility first to Alpha and now Ramsay Healthcare. How can the hospital operate and what will the impact be on care with all these groups competing to wring profits from the system.
Health care sets a cracking pace
Australasian Business Intelligence October 8, 1999
SOURCE: Sydney Morning Herald - - - BYLINE: Anthony
HughesR
ABSTRACT: The rapid consolidation of Australia's specialist health care sector is gathering pace. Already on the cards are Mayne Nickless' purchase of Alpha Healthcare radiology division and several radiology floats. Pittwater Radiology, a company which runs one of Australia's biggest radiology practices, is targeting a public listing for 2000. Elsewhere, ANZ Investment Bank is believed to be close to launching a $A30 million float of another Sydney radiology practice, Clinical Associates. And, on 7 October 1999, Alpha Healthcare, which has been struggling under a heavy debt burden, announced Mayne Nickless would assume control of Alpha's radiology businesses and rights to operate a comprehensive radiology practice in Alpha's Westmead Private Hospital, which is under construction
Alpha Healthcare sells division to Mayne
Nickless
Australian Financial Review 08 Oct 1999
The rationalisation in the medical diagnostics industry continued yesterday with struggling hospital operator Alpha Healthcare Ltd announcing it would sell its radiology division to Mayne Nickless Ltd. While the acquisition is estimated to be worth less than $10 million, - -
Health care sets a cracking pace
Sydney Morning Herald 08 Oct 1999
The rapid consolidation of Australia's specialist health care sector is gathering pace, with Mayne Nickless's purchase of Alpha Healthcare radiology division and several radiology floats on the cards.
Sun Healthcare files for bankruptcy
Albuquerque Tribune October 14, 1999
After weeks of rumors, Sun Healthcare Group Inc. filed its Chapter 11 petition this morning in federal bankruptcy court in Delaware.
---------------------
A Chapter 11 bankruptcy filing gives the company protection from its creditors while it reorganizes.
ALA - Sun Healthcare Files Voluntary
Petition
Australian Associated Press October 15, 1999
Mr Chet Bradeen, Senior Vice President of Sun Healthcare Group Australia Pty Ltd advised Alpha that this filing for reorganisation in the United States "will have no impact on (Sun's) Australia/Asia Pacific commitment and operations".This action taken by Sun in the US will have no day to day effect on Alpha Healthcare and will have no effect on major projects such as Alpha Westmead Private Hospital. Alpha/Sun funding of this project is complete and the major tender (ANZ Banking Group) commences its contributions as of today (15th October 1999).
Alpha's debt position with Sun comprises
a) a subordinated loan of $ 17.4 million used to finance the first stages of the Alpha Westmead Private Hospital project;b) a $ 10 million convertible note; and
c) an outstanding balance of approximately $500K on a $ 4.75 million loan advanced to Alpha by Sun in December 1998. Alpha has prepaid $ 1.2 million of the agreed repayment schedule in relation to this loan.
The directors believe that Sun Healthcare Inc (US) filing for Chapter 11 reorganisation does not provide any opportunity for early repayment of any of these outstanding debts.
---------------------
The Directors of Alpha are pleased to announce:a) the completion of the sale of its radiology operations to a wholly owned subsidiary of Mayne Nickless Limited; andb) the commencement of drawings - which will occur on 18th October 1999 - under the ANZ senior debt facility to fund all further stages of construction of the Alpha Westmead Private Hospital.
Sun Healthcare Files Voluntary Petition
for Bankruptcy Protection
Australasian Business Intelligence October 14, 1999 SOURCE:
Australian Stock Exchange Announcements
ABSTRACT: Australian medical group Alpha Healthcare Limited reports on the bankruptcy of a major shareholder on October 14, 1999. Alpha reports that the parent firm of 38% shareholder, Sun Healthcare Group Australia Pty Ltd, the US firm Sun Healthcare Group Inc, has filed for Chapter 11 bankruptcy in the US. Sun Healthcare Group Australia says the bankruptcy of its 90% parent firm will not affect its Australian operations. - - -
Alpha reassures - - - Anthony
Hughes
Sydney Morning Herald 16 Oct 1999
Struggling private hospital operator Alpha Healthcare yesterday hosed down concerns about its future after its US-based 38 per cent shareholder and a major creditor, Sun Healthcare, filed for bankruptcy protection.ABSTRACT (Australasian Business Intelligence)
Alpha Healthcare stated on 15 October, 1999 that the move by the American nursing home company did not place Alpha Healthcare's future at risk or mean an early repayment of debts. The shareholding in Alpha Healthcare is held through a subsidiary, in which Sun Healthcare has a 90% stake. Both the US and Australian nursing home sectors are experiencing troubled times in the late 1990s
AUSTRALIA'S JAMES HARDIE TO SELL PORTABLE
BUILDINGS UNITS
ASIA PULSE October 22, 1999
He said the sale was part of JHI's consolidation strategy under which it was selling interests in bathroom products, pipelines, irrigation and building services, and shares in businesses such as medical services group Alpha Healthcare Ltd and theme park Australia's Wonderland.
Hardie's portable division gets a move
on
Australasian Business Intelligence October 23, 1999
SOURCE: The Advertiser - - - Drew Gibson
ABSTRACT: It plans to sell its interests in Alpha Healthcare Limited and a New South Wales theme park
Healthcare Asia 3rd quarter, 1999
(Accessed 1 Nov 1999)
Ch 8-Health trends: Data on the Asian healthcare industry
Economist Intelligence Unit - Asia - - - www.eiu.com USE Nov
1999
EIU`s list of the top 15 healthcare providers in Asia.............Company...........................Country .....currency (m) .. $ m
- 1 Health Care of Australia(c) .... Australia .......814.6 ..... 553.7
- 2 Nichii Gakkan ........................Japan ......68,061.0 ..... 535.1
- 3 Parkway Holdings ..................Singapore .... 354.6 ..... 212.4
- 4 Australian Hospital Care ........ Australia .......244.4 ..... 166.6
- 5 Ramsay Healthcare ............... Australia ....... 203.6 .... 138.8
- 6 Sonic Healthcare ................... Australia ....... 171.4 .... 107.5
- 7 Healthscope ......................... Australia ....... 107.7 ...... 73.4
- 8 Alpha Healthcare ................... Australia ........ 86.7 ...... 59.1
- 9 Pantai Holdings Berhad .......... Malaysia ....... 162.1 ..... 56.4
- 10 Bumrungrad Hospital ............ Thailand .... 1,671.9 ..... 56.1
- 11 Prasit Patana ....................... Thailand .... 2,331.3 ..... 51.5
- 12 Samitivej Public .................... Thailand .... 1,155.5 ..... 38.8
- 13 Bangkok Dusit Medical .......... Thailand .... 1,481.1 ..... 36.3
- 14 Raffles Medical ..................... Singapore ...... 47.8 ..... 28.7
- 15 KPJ Healthcare Berhad ........... Malaysia ...... 106.7 ..... 27.3
X CHANGE ::: Alpha on Wave
Sydney Morning Herald 12 Nov. 1999
One of the curious risers in recent days has been hospital operator Alpha Healthcare, showing all the hallmarks that someone out there thinks it’s a takeover target.
---------------
--- unaware of anything afoot and 38 percent shareholder Sun healthcare, under bankruptcy protection in the US, had given him no indications it was a seller.
------------
On some broker's reckoning the stock is cheap - - - But Alpha has been selling assets recently to ease its debt burden - - -
Significant Profit as Alpha sells Perth Surgicentre Australian Associated Press November 23, 1999
The directors of Alpha Healthcare Limited ("Alpha") announced today the sale of The Perth Surgicentre to Total Care Australia Pty Limited, a wholly owned subsidiary of Revesco Ltd.
-------------------------
"The Perth Surgicentre has been making a negative contribution to Alpha's earnings and this sale will not only reverse that result. In addition, the sale price of $2.5 million allows Alpha to realise a capital profit of approximately 40% over book value," Mr Compton said.
Acquisition of Perth Surgicentre
Australian Associated Press November 23, 1999 01:91
Revesco wishes to announce that its wholly owned subsidiary, Total Care Australia Pty Ltd has entered into a Business Sale Agreement with Alpha Healthcare Limited to purchase the Perth Surgicentre - -
--------------------
The acquisition of the Perth Surgicentre further compliments the Company's move towards offering a total service to general practitioners and specialists, who provide services to patients through the Company's network of medical centres.
Alpha Divests Medical Centres
Alpha Healthcare Limited Press Release23/11/99
The directors of Alpha Healthcare Limited ("Alpha") announced today the sale of Alpha's five medical centres to Peak Health Pty Limited.Mr Mark Compton, Managing Director of Alpha said, "The sale (for an undisclosed sum) allows us to concentrate more fully on our core business of operating private hospitals."
Alpha's directors believe that the medical centre businesses no longer have a strategic fit with the Company. Mr Compton said that "our medical centres were originally purchased as part of a vertical integration strategy with diagnostic services. The changes which have occurred in the diagnostic services market have led to this integration strategy being set aside. This allows Alpha to concentrate our capital and management resources more fully on our core business of operating private hospitals."
"Alpha has already disposed of its pathology and radiology operations as part of setting aside this strategy and the sale of the medical centres completes this process'" he said.
ALA - Chairman's Address to
Shareholders
Australian Associated Press November 23, 1999
The year in review has been a difficult one in the private healthcare sector and for Alpha Healthcare Limited.
--------------------
Alpha's net operating loss for the year was $2.103 million; $21.256 million loss after abnormals. After giving due consideration to the operating performance of the Company over the last year and the capital requirements ahead, the Directors have resolved not to pay a final dividend this year. As this result emerged, your Board instituted reforms in two areas of our operations. The first was a management restructuring whereby the number of senior management positions was reduced and, in the process, we agreed with the wish of our then Managing Director, Paul Hopper to terminate his contract early. The ongoing saving in annual expenses of these changes is approximately $1 million.Secondly, we decided to exit the diagnostic services market with the divestment of our pathology and radiology businesses to Sonic Healthcare Limited and Mayne Nickless Limited respectively.
------------------
The proceeds from these sales allowed us to reduce borrowings by approximately $38 million. This debt reduction will also have a positive impact upon profitability for FY2000 by reducing our interest payments.As a consequence of reduced earnings performance in the hospital businesses, the hospital assets were revalued, with a subsequent write-down of $17.627 million. This reduced our NTA per share from $1.10 to $0.71. The directors believe this revaluation was prudent and provides a "solid" value of the hospital assets going forward.
In recent days we have successfully completed negotiations for the sale of our five medical centres and our Perth Surgicentre. Our medical centres were originally purchased in order that they would fit strategically with our diagnostic services. As a consequence of the sale of pathology and radiology the primary care medical centres were no longer a strategic component of the Company going forward.
-----------------------
I am pleased to advise that a satisfactory financial restructure of BML has taken place and that Alpha now owns 100% of BML. Improved occupancy combined with significantly reduced rental obligations means Southern Highlands Private Hospital is trading profitably and growing.
-------------------------
Costs have been significantly reduced and this combined with a new operational focus has seen an upturn in our results.
--------------------------
- - - - Indeed we are confident that we will return to dividend payments in this financial year.
Alpha board runs into flak - - -
Anthony Hughes
Sydney Morning Herald 24 Nov 1999
Directors of struggling private hospital operator Alpha Healthcare faced a grilling from shareholders yesterday about the company's poor performance and payments to its former chief executive. The board promised a new strategy and the resumption of dividend payments this financial year.ABSTRACT: (Australasian Business Intelligence)
- - - - The annual meeting coincided with the sale of Alpha's five medical centres. Alpha shares closed $0.005 lower at $A0.32, well below its net asset backing of $A0.71. - - - - - - Shareholders also quizzed the board on the payment of $A1.11 million to former CEO Paul Hopper, who retired before the expiry of his contract. They were told the payment covered Alpha's legal obligations under the contract
The prognosis for
health-care stocks
Australian Financial Review 05 Jan 2000
Jane Boyle reports on a diverse sector in which the value of top stocks has trebled over the past 12 months while others have fallen by the same proportion, and what analysts forecast for the coming year. The health-care sector has polarised over the past year, with investors chasing growth - - - -
Significant Turnaround in 1st Half
Performance
Australasian Business Intelligence January 25, 2000
SOURCE: Australian Stock Exchange Announcements
ABSTRACT: - - - Alpha Healthcare Limited reports its interim results on 25 January 2000. The firm reports for the six months to 31 December 1999 it achieved a modest profit, compared to a loss of $A837,000 before abnormals in the previous corresponding period. - - -
Alpha earnings take a turn for the
better
Australasian Business Intelligence January 26, 2000
SOURCE: The Age
ABSTRACT: Private hospital group Alpha Healthcare reported on 25 January 2000 that it expected a "modest" first-half profit. - - - would take the company into the black. But it warned that the private health-care sector was still experiencing difficult trading conditions
Health industry ills
Australasian Business Intelligence January 29, 2000
SOURCE: The Australian Financial Review - - - Jane
Boyle
ABSTRACT: Many Australian listed hospital operators are struggling in January 2000. - - - - - - while shares in rival Alpha Healthcare were languishing at $A0.295
Corelli goes to top of class
Illawarra Mercury 21 Feb 2000
Grey mare Corelli landed a big plunge and earned herself a possible crack at black type company with a gutsy win in yesterday's Alpha Healthcare Class Six Plate (1300m) at Kembla.
Half Yearly Report
Australian Associated Press February 29, 2000
The Directors of Alpha Healthcare Limited today announced the results for the first half of FY 99/00.Operating profit before abnormals and tax was $109K which compares very favourably with an operating loss for same period in the previous year of $837K.
-----------------------
The result after abnormals showed a loss of $200K which is the net result after losses on the sale of medical centres and radiology and a 40% book profit on the sale of Perth Surgicentre.
-----------------------
Mr Compton said, "Every indication is being given that this facility (ie Westmead Private Hospital) will be very busy from day one and will provide a high quality care and service to the community of Western Sydney and the medical practitioners".
Sale and Lease Back of 4 Private Hospitals
:::: ALPHA HEALTHCARE CONFIRMS STRATEGIC DIRECTION BY MOVING
HOSPITALS OFF BALANCE SHEET, AND SIGNIFICANTLY REDUCING DEBT
ASX Document date: Wed 05 Jul 2000 2000-07-05 ASX-
The Directors of Alpha Healthcare Limited ("Alpha") today announced that they had accepted an offer from Australian Unity Funds Management Limited for the sale to and lease back from Australian Unity Healthcare Property Trust of 4 of Alpha's private hospitals.The transaction, subject to conditions precedent, is valued at in excess of $30M and will allow Alpha to repay (a) debt to its bankers; (b) a $13M loan from James Hardie Limited and (c) the balance outstanding on a convertible note being held by Alpha's major shareholder Sun Healthcare. The transaction is due to be completed by the first week in September 2000.
Alpha's Managing Director, Mr Mark Compton said, "This is a very good deal for Alpha. Our emphasis over the past 12 months has been to strengthen our balance sheet, divest poorly performing businesses and to focus on our core competency in operating hospitals. We believe this transaction not only underpins our strategic direction but enables us to move forward with great confidence and continue to improve our operating performance".
Mr Compton said "We are the first listed private hospital group to move hospital real estate off our balance sheet in order to allow it to more appropriately reflect our role as a hospital operator".
"With the exception of the project funding for the Alpha Westmead Private Hospital project, and a $4M interest free facility not due for repayment until August 2002, this transaction will make Alpha debt free" Mr Compton said.
----------------------------
Alpha Westmead Private Hospital is included in the transaction by way of a right of first refusal given to Australian Unity Healthcare Property Trust to purchase and lease back this hospital to Alpha. Alpha Westmead Private Hospital is a 136 bed tertiary level co-located private hospital due to open on the 9th October 2000."This transaction is a major step forward for the company which restructures our balance sheet and allows us the opportunity to continue to focus on improving our business operations" Mr Compton said.
Alpha healthcare to sell and leaseback
four hospitals
AAP NEWSFEED July 5, 2000
The four hospitals being sold are Berkeley Vale Private, Mt Wilga Private, Hunters Hill Private and Illawarra Private.
-----------------------
Alpha shares were up 2.5 cents to 22.5 cents at 1031 AEST.
Hospitals deal rids Alpha of debt ills - -
- Anthony Hughes
Sydney Morning Herald 06 Jul 2000
Alpha Healthcare may have resuscitated its fortunes against the backdrop of a cautiously improving industry outlook by selling and leasing back the bulk of its private hospitals to mend its debt-laden balance sheet. The $30 million sale of four NSW private hospitals to Australian Unity Healthcare- - -ABSTRACT: Australasian Business Intelligence
- - - - - - Apart from a $A4 million interest-free loan and project funding for the Alpha Westmead Private Hospital in Sydney, which is due to open in October, Alpha will be debt-free. Alpha shares rose $A0.03 to $A0.23 on 5 July
Fund's $30m hospital plan
Australasian Business Intelligence July 6, 2000
SOURCE: The Australian Financial Review
ABSTRACT: Health care group Australian Unity Health Limited revealed a $A30 million expansion plan for its specialist property fund. It said on 5 July 2000 that Australian Unity Healthcare Property Trust agreed to acquire four private hospitals from listed Alpha Healthcare Ltd, which will lease back the hospitals to the trust for 15 years.
Alpha offloads hospitals
Australasian Business Intelligence July 6, 2000
SOURCE: The Australian
Hospital sales ease Alpha's debt
weight
Australasian Business Intelligence July 6, 2000
SOURCE: The Age - - - Anthony Hughes
ABSTRACT: - - - - - The move is thought to be in the service of relieving the fund's considerable debts, which include a $A13m loan from James Hardie Industries Limited. It follows the failure of an expected deal with Mayne Nickless Limited, which has been contemplated for several years.
Westmead Private Hospital Construction
Completes Ahead of Schedule
Alpha Healthcare Limited Press Release01/08/00
Handover of Westmead Private Hospital from the contractors Fletcher Constructions to Alpha Healthcare occurred today. The hospital has been completed ahead of schedule and under budget. The 136 bed tertiary level acute care hospital will begin to receive patients as planned after the Olympic Games on 9 October 2000.
-----------------------------
Alpha will be closing its Charles Wentworth and Bankstown Private Hospitals in order to consolidate as much caseload as possible into the new Westmead Private Hospital.
AUSTRALIAN HEALTHCARE INVESTMENT FUND
ASX Company Announcement 28 August 2000
At a Unitholders meeting, held on 30 June 2000, Unitholders voted in favour of winding up the trust. - - - - The major asset of the Fund is the Southern Highlands Private Hospital at Bowral NSW. - - - - On the completion of a sale the remaining assets of the Trust will then be distributed to Unitholders.
ALA ALPHA HEALTHCARE - ASX Company
Announcement LIMITED
AAP NEWSFEED September 13, 2000
MEDIA RELEASE
The directors of Alpha Healthcare Limited are pleased to announce a net profit of $750,000 for the full year ended 30 June 2000.
----------------
We are optimistic that the significant improvement in private health insurance levels across Australia resulting in the return of health funds to a profitable position will see improved rebates flow to private hospitals.
--------------------
Mr Compton said "Private health insurers wish to purchase high quality health care services from efficient providers. Alpha has demonstrated its ability to deliver on both criteria". Looking forward, Alpha's 136 bed Westmead Private Hospital opens on 9 October 2000 with early indications of demand (such as maternity bookings) signalling a strong start to the hospital.
Annual Report, Top 20 shareholders,
ASX Document date: Thu 26 Oct 2000
TOP TWENTY SHAREHOLDERS AS AT 30/09/2000NAME ......................................................NUMBER
Exchanges Contracts on Sale &
Leaseback Transaction - - ALPHA HEALTHCARE LIMITED
ASX Document date: Mon 30 Oct 2000
The Directors of Alpha Healthcare Limited today announced that contracts had been exchanged with Australian Unity Funds Management for the sale and lease back of 3 of Alpha's hospitals.
-----------------
The proceeds to Alpha from this transaction will total approximately $26m, which will be used to retire debt to Alpha's bankers and James Hardie Limited.The sale proceeds from the Australian Unity transaction flow to Alpha in two tranches. The first tranche of $17.35M will be paid as cash on completion on Tuesday 31 October, 2000. The second tranche ($8.67M) will be paid as Units in the property trust, redeemable at the value of the agreed purchase price. Australian Unity estimates that these Units will be redeemed within 1 to 2 months of the Units becoming available to the market. The likely timeframe is late November/early December 2000. After completion of the Australian Unity transaction, Alpha will have total assets of $111.2M and net debt of approximately $55M.
Sun Healthcare Group Holdings (Australia) (SHGA) is a 38% shareholder in Alpha. SHGA was placed into Receivership in mid-September 2000. Alpha Healthcare has no credit exposure to SHGA or any of its affiliates.
Alpha is working with SHGA's Receiver and Manager (Ernst & Young) in respect of the sale of SHGA's assets in Alpha and is also negotiating with Sun's Receiver a mutually satisfactory schedule of repayment of the outstanding balance of short-term debt payable to Sun. Appropriate debt standstill arrangements are in place whilst the negotiations proceed.
-------------------------
Alpha's 136 bed tertiary level hospital, Westmead Private opened on schedule on 9 October 2000. We expect Westmead to contribute to earnings from FY2001/2002.
Hospitals sold for $26 million
Australasian Business Intelligence October 31, 2000
SOURCE: The Australian Financial Review
ABSTRACT: Listed Australian medical group, Alpha Healthcare, has sold three hospitals for $A26 million to reduce debt. The buyer in late October 2000 was Australian Unity Funds Management, which agreed to lease the hospitals back to Alpha as part of the deal. The hospitals are Berkley Vale, Hunters Hill Private and Illawarra Private, all in New South Wales
Settlement Complete on Australian Unity
Transaction - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Wed 01 Nov 2000 2000-11-01
ASX-SIGNAL-G
The Directors of Alpha Healthcare are pleased to advise that settlement on the sale & lease back transaction for 3 of Alpha's hospitals for $26M occurred, as planned, on 31 October, 2000. The lease back to Alpha of the hospitals is for 15 years plus three five year options.
------------------------------
As previously reported Alpha is in active negotiations with Sun Healthcare Group Australia Receiver & Manager Ernst & Young, regarding a repayment schedule for the residual unsecured debt owing to Sun Healthcare. It is expected that this arrangement will be settled soon. Once this unsecured debt is dealt with, Alpha will be substantially debt free, with the exception of the non-recourse funding for the Westmead Private Hospital project.
AUSTRALIA S SONIC HEALTHCARE, RADCLIN TO
MERGE
ASIA PULSE November 22, 2000
Meanwhile, medical services group Alpha Healthcare Ltd said the recent strength in its share price may have been caused by the flow on effect from speculation of a possible takeover of Australian Hospital Care Ltd by Mayne Nickless.In response to an Australian Stock Exchange query, Alpha said it could not offer any other explanation for the share price rise.
"We surmise that media speculation regarding a possible takeover of Australian Hospital Care by Mayne Nickless has had a flow-on effect on other private hospital operators," Alpha said.
Alpha shares closed up 1.9 percent, or 0.5 cents, at 27 cents Tuesday. They had been trading at 23 cents last Friday.
Chairman`s AGM Address to Shareholders - -
ALPHA HEALTHCARE LIMITED
ASX Document date: Fri 24 Nov 2000
We are pleased to report a significant turnaround in the company's financial performance over the year in review.As previously announced, the company made a Net Profit of $750,000 for the FY2000. Whilst this could not be regarded as a satisfactory return on investment, it is important to note that this is a very significant improvement from the operating loss experienced last year of over $2.1m & the net loss of $21M.
------------------------
We are optimistic that these improvements in benefits paid to us will begin to flow in the second half of FY 2000/2001 and then through FY 2001/2002.
---------------------------
Notwithstanding substantial improvements in the Company's financial performance we have again taken the decision, regrettably, not to pay a dividend.Improved operations in the hospitals came from better, innovative cost control; targeted marketing activities and a focus on attracting higher margin revenue work. Management's efforts to improve quality and contain costs were further recognised in the Australian Private Hospitals Association 2000 Awards for Excellence.
--------------------------
In addition to operational improvements, as previously reported the Company divested poorly performing assets in the form of our radiology & medical centre operations and Bankstown Private Hospital in the current year, which has allowed more focused management attention on our core operations.
-------------------------
A significant post-balance date event was the Board's decision to undertake a sale & lease back transaction for a number of the hospitals to Australian Unity Funds Management Limited. This transaction, in a strategic sense, signals the intention to move real estate off our balance sheet and concentrate much more on our role as a health services management & information enterprise.Other listed operators are yet to make this transition. In a financial sense this transaction has allowed Alpha to retire the large bulk of its debt. Alpha's debt to equity ratio (excluding the non-recourse Westmead project financing) changed from 102% to 26% after the transaction. With no change in the net tangible asset backing per share.
Going forward, we will continue to refine operating costs through better use of information technology; researching what is world's best practice in private healthcare operations & making better use of group purchasing arrangements. Moreover, we will continue to build occupancy in our hospitals through concerted marketing campaigns targeted at high margin services.
-------------------------
Sun Healthcare Group Holdings (Australia) is a 38% shareholder in Alpha. Sun Healthcare was placed into Receivership in mid-September 2000. Alpha Healthcare has no credit exposure to Sun Healthcare of any of its affiliates.Alpha is working with Sun's Receiver and Manager (Ernst & Young) in respect of the sale of Sun's assets in Alpha and is also negotiating with Sun's Receiver, a mutually satisfactory schedule of repayment of the outstanding balance of short-term debt payable to Sun.
----------------------------
The year in review has been a successful year in terms of the company's turnaround and financial strengthening. We are confident that Alpha is now in a very good position to grow over coming years.
Results of AGM - - ALPHA HEALTHCARE
LIMITED
ASX Document date: Mon 27 Nov 2000
At the Annual General Meeting held on 24
November 2000 in Sydney, Alpha's shareholders approved the four items
of business, namely;
----------------
ii) re-election of Warren Schelling as a director;
Sale of Bankstown Private Hospital - -
ALPHA HEALTHCARE LIMITED
ASX Document date: Fri 01 Dec 2000
Alpha Healthcare Limited announced today that the sale of the Bankstown Private Hospital site has been agreed. - - - - - The hospital was closed at the end of August 2000 after being a negative contributor to earnings for some time.
Debt Repayment Arrangements - - - ALPHA
HEALTHCARE LIMITED
ASX Document date: Tue 19 Dec 2000
The Directors of Alpha Healthcare Limited (Alpha) announced today that an agreement had been signed between Alpha and Sun Healthcare Group (Receiver and Manager appointed) regarding repayment of an outstanding short term debt facility.The agreement provides for a structured repayment arrangement of $7.5m during the period to 31 July 2001. Debt repayment will be funded by the proceeds from the planned sale of Charles Wentworth Private Hospital or St Edmund's Private Hospital, the balance of proceeds from the Australian Unity sale and lease back transaction previously announced and operating cashflow.
Alpha's Managing Director Mark Compton said "This provides a high degree of certainty in terms of repayment of this debt. The repayment arrangements provide a favourable outcome to Alpha within a manageable timeframe."
"Resolution of this issue completes Alpha's debt restructure program, with senior bank debt, debt to James Hardies Limited and Sun Healthcare Group now either almost or completely repaid. At the conclusion of this debt repayment agreement with Sun in July 2001. Alpha will be debt free with the exception of the Westmead Private Hospital project and normal leasing arrangements. The debt in the Westmead Private Hospital project is non-recourse to Alpha Healthcare Limited," Mr Compton said.
Alpha makes deal on debt to Sun Healthcare
Group
AAP NEWSFEED December 19, 2000, Tuesday
Alpha Healthcare Ltd has reached an agreement with major shareholder Sun Healthcare Group over repayment of an outstanding short term debt facility.
Sonic boom
Australasian Business Intelligence December 19, 2000
SOURCE: The Australian Financial Review
ABSTRACT: On 15 December 2000, 5.9 million Sonic Healthcare shares passed through the hands of stockbroker, Salomon Smith Barney. Valued at $A8.20, the scrip was worth $A48.4m. On the same day, shares in Alpha Healthcare added $A0.05, or 19 per cent in value, to close at $A0.31. Amongst Australia's private hospital operators, Alpha is considered by many observers to be the next group that will be swamped by the consolidation of the industry
Ramsay eyes healthcare
rivals
The Australian MON 19 FEB 2001
* Healthcare:- RAMSAY Health Care looks set to launch the next strike in the rationalisation of the private hospital sector, with the company confirming it is on the lookout for acquisitions.ABSTRACT: (Australasian Business Intelligence)
Australia's Ramsay Health Care has confirmed that it is on the acquisition trail. Managing Director, Pat Grier, said in mid-February 2001, that is an opportune time to be looking for hospitals or groups with which the company could merge its operations, given the large volume of funds that has been directed towards private health insurance in Australia in the late 2000-early 2001 period. Alpha Healthcare is one possible target - - - -
Ramsay enjoys healthy 60pc profit jump
Australian Financial Review 28 Feb 2001
Ramsay Healthcare Ltd has more than doubled its interim profit, claiming the turnaround in performance is yet to fully reflect the benefits of the surge in private health fund membership.
Mayne fighting fit and on prowl
The Australian THU 01 MAR 2001
MAYNE Nickless boss Peter Smedley says Australia's largest private hospital operator is cashed up with a balance sheet primed for acquisitions.ABSTRACT: (Australasian Business Intelligence)
Australia's Mayne Nickless has reported an interim profit of $A118.5m for the first half-year fiscal 2001. - - - - - Mayne Nickless was able to grow organically and also make acquisitions, according to Smedley.
Response to ASX Price Query - - ALPHA
HEALTHCARE LIMITED
ASX Document date: Thu 08 Mar 2001
In response to your specific enquiries :i) Is the Company aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company?
Alpha is not aware of any such information
iii) Is there any other explanation that the Company may have for the price change and increase in volume in the securities of the Company?
No. We surmise that a number of factors may be causing an increase in share price along with increased volumes:
a) Alpha's major shareholder (Sun Healthcare Australia), which owns 38% of the issued share capital, is in receivership. The Receiver is trying to dispose of all Sun's assets, including this parcel of shares. There has been recent media speculation that the sale of a 38% parcel might trigger a full takeover bid for Alpha, with the likelihood of a control premium. We are aware of recent discussions between the Receiver and possible bidders, none of which have been conclusive, or have involved any proposal being put to the Alpha Board;
Half Yearly Report/Media Release - - ALPHA
HEALTHCARE LIMITED
ASX Document date: Thu 15 Mar 2001
MEDIA RELEASE
IMPROVED RESULTS FOR ALPHA AND WESTMEAD PRIVATE HOSPITAL HAS STRONG STARTThe Directors of Alpha Healthcare Limited (Alpha) are pleased to announce the results for the half year ended 31 December 2000.
A significant factor which influenced these results was the opening of our new collocated tertiary level Westmead Private Hospital in October 2000. As expected this made a negative contribution to earnings, however, the activity at the hospital has been better than anticipated and better than most comparable facilities which have commenced operation over the past 2-3 years.
At the net level, the Group's position improved by 37.5% to a loss of $125,000 compared with the previous half year. However, if the Westmead performance during its start-up period is excluded, the net position returns to profit.
--------------------
Significant increases in occupancy were achieved across all hospitals in the group when compared with the previous half year. In addition, revenue per patient per day also increased, influenced in part by Westmead Private coming on line, but also through improved casemix in the hospitals along with improved contract positions with health insurance funds. Of particular note is the very significant improvement in Alpha's Illawarra Private Hospital, a tertiary level acute care facility located in Wollongong.
---------------------------
During the first half, Alpha closed Bankstown Private Hospital. This hospital had been a significant drain on earnings for sometime. The hospital site was sold to a nursing home operator and the proceeds used to retire debt.In 2001 the business of St Edmund's Private Hospital is being transferred to the Charles Wentworth Private Hospital site at Wentworthville and the St Edmund's site will be sold for non-hospital use.
Alpha's debt position has changed significantly when compared with the first half of FY 99/00. Alpha has reduced debt (excluding the Westmead Private Hospital project) from $35M to $14M.
--------------------
In terms of Corporate activity, Sun Healthcare Group Australia Pty Ltd (SHGA), a 38% stockholder in Alpha, was recently placed into receivership. The Receiver and Manager Mr John Gibbons of Ernst & Young is attempting to sell SHGA's assets which include the 38% stockholding in Alpha. An Information Memorandum has been prepared for the Receiver by Ernst & Young Corporate Finance to sell, inter alia, the 38% shareholding and is being provided to interested parties under the terms of a confidentiality agreement.Alpha is well placed geographically and functionally to derive significant benefit from the industry turnaround as it starts to unfold.
---------------------------
The improving operations combined with positive industry factors auger well for the company.
Westmead costs keep Alpha in the red
Australasian Business Intelligence March 16, 2001
SOURCE: The Australian - - - Glenda Price
ABSTRACT: Australia's Alpha Healthcare reported an interim loss of $A125,000 on 15 March 2001. The loss is associated with the company's costs in opening the Westmead Private Hospital in October 2000. Sales also declined by 3.2% to $A41.5 million. Alpha's share price fell $A0.01 to $A0.395, up from a recent low of $A0.155, amid speculation that it may be acquired via its 38% shareholder, Sun Healthcare. Alpha's debts have been reduced from $A35 million to $A14 million in the first half of 2000-01
Market Update - - - ALPHA HEALTHCARE
LIMITED
ASX Document date: Fri 30 Mar 2001
The Directors of Alpha Healthcare Limited (Alpha) wish to advise the market of the following:1.0 INSURANCE
For several years, HIH has been Alpha's professional indemnity insurer. As such, the appointment of a provisional liquidator for HIH has significant implications for Alpha:
a) Alpha's directors believe that it is prudent to arrange alternative cover. This was arranged with a major global insurer on the day that HIH's liquidator was appointed. The premium costs with the new insurer represent a very significant increase on premiums previously paid to HIH;
b) Alpha's policy with HIH was paid up until the end of October 2001. Accordingly a significant amount of premium expense has been incurred and may not be retrievable;
c) In the absence a clear position regarding claims made prior to the liquidator's appointment, the 'worst case' scenario is that Alpha may have to meet the full cost of these claims. Some of these claims may take many years to reach conclusion.
The combination of these factors means that Alpha may have to provide for unrecoverable expenses of in excess of $600,000 in the second-half of the current financial year. At this stage, we believe that potential exposure to claims in future years will not be significant.
RHC`s :Ramsay ann. Intention to Make
Takeover Bid for Alpha
ASX Document date: Mon 09 Apr 2001
Ramsay Health Care Ltd today announced the intention to make a cash takeover offer for all the issued share capital in Alpha Healthcare Limited (Alpha) at $0.40 per share after reaching agreement to acquire approximately 19.9% of Alpha.Ramsay has entered into an agreement with the receiver of Sun Healthcare Group Australia Pty Limited and SHG Holdings Pty Limited to buy approximately 19.9% of the issued ordinary shares of Alpha at a price of $0.40 per share. Ramsay has also agreed to acquire debt owed by the Alpha group with a book value of approximately $31 million at a price of approximately $11 million from the Sun Healthcare Group and James Hardie Industries Limited.
-----------------------------
The offer represents a 5.3% premium to Alpha's closing price as of last Friday, a 15.4% premium to the volume weighted average share price over the past 90 trading days and a 31.4% premium to the volume weighted average price over the past year.
------------------------
"Having become entitled to a 19.9% shareholding in Alpha and acquiring a significant part of Alpha's debt at a reasonable price, we believe Ramsay is in a solid position to complete this acquisition successfully," Mr Grier said.
Takeovers day - Ramsay bids for Alpha,
mop-up for Seaworld
The Daily Telegraph MON 09 APR 2001
TWO takeover bids took the spotlight today as Australian share prices drifted lower. In a further rationalisation of the private hospital industry, Ramsay Health Care launched an agreed bid for Alpha Healthcare.
Directors` Statement re Takeover Offer by
RHC - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Mon 09 Apr 2001keover
The Directors of Alpha Healthcare Limited (Alpha) have met to consider today's announcement by Ramsay Health Care Limited (Ramsay), of its intention to make a bid for the entire issued capital of Alpha. After considering Ramsay's announcement, the Directors make the following comments:
- The Directors believe that the proposed offer price of 40 cents cash per share does not adequately reflect the underlying value of the Company given:
- the improving performance of Alpha
- the significant potential of the Westmead Private Hospital project
- the improving dynamics of the private healthcare industry.
- The Directors believe that the proposed offer price of 40 cents per share does not reflect any of the positive impact of the very significant operational synergies which could be realised by Ramsay and the substantial benefits to Ramsay of acquiring $31M of debt for a consideration of only $11M.
- The proposed offer is less than 50% of Alpha's current net tangible asset backing of 82 cents per share.
- In recent weeks, Alpha has been approached and has had discussions with other participants in the healthcare and finance sectors. Those discussions had not been concluded when the announcement was made by Ramsay today.
Alpha Healthcare expresses surprise at
take-over offer
AAP NEWSFEED April 9, 2001, Monday
Alpha Healthcare Ltd today said it was surprised by news Ramsay Health Care Ltd would mount a cash takeover of the company.Ramsay today announced its intention to make the takeover offer for all the issued capital in Alpha at 40 cents a share.
Ramsay had already reached an agreement to buy about 19.9 per cent of Alpha with the receiver of Sun Healthcare Group Australia Pty Ltd and SHG Holdings Pty Ltd.
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Mr Compton said a 38 per cent slice of Alpha had been on the market since its major shareholder Sun Healthcare Group was placed in the hands of receivers last October.
Sale of St Edmunds Private Hospital - - -
ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 10 Apr 2001
Alpha Healthcare Limited announced today that the sale of the St Edmunds Private Hospital site in Eastwood has been agreed.
Ramsay swoops on Alpha - - Bruce
Brammall
THE HERALD SUN 10.4.2001
Ramsay Healthcare has launched an offer to buy 19.9 per cent of Alpha Healthcare for $17.4 million, at a share price of 40 cents a share. Analysts are predicting that Ramsay Healthcare will soon purchase more Alpha shares from James Hardie and Sun Healthcare.
Ramsay takeover target Alpha's shares hit
two-year high
AAP NEWSFEED April 10, 2001, Tuesday
By Karen Michelmore
Takeover target Alpha Healthcare Ltd was today trading at its highest level in two years, following news rival Ramsay Health Care Ltd wants to snap up the hospital management group.Alpha shares hit 46 cents today, equal to its two-year high set a month ago, and six cents higher than Ramsay's offer.
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It came as Alpha Healthcare's managing director Mark Compton said directors were unhappy with Alpha's offer, adding the company had held talks with other players in the healthcare sector.
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Alpha also announced today it had settled the sale of its St Edmunds Private Hospital site at Eastwood, in Sydney's north west. However, Mr Compton said it was a coincidence it came just a day after Ramsay's offer.
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Settlement of the sale of St Edmunds, which exceeds the book value by almost $500,000, was expected in early May, Alpha said.
Ramsay in $17m bid for Alpha
Australian Financial Review 10 Apr 2001
Ramsay Healthcare continued yesterday the wave of consolidation in Australia's private health-care industry, launching a $17 million offer for Alpha Healthcare. Fresh from a $30 million institutional raising last month, Ramsay has entered into an agreement with the receiver of Sun Healthcare Group - - -ABSTRACT: (Australasian Business Intelligence)
- - It (Ramsay) also agreed to absorb Alpha's $A31m debt. Ramsay is negotiating with the receiver of Sun Healthcare Group Australia. Analysts welcomed the deal,- - - -
Takeover bid spurs price rise
Australasian Business Intelligence April 10, 2001
SOURCE: The Mercury
ABSTRACT: Shares in Australia's Alpha Healthcare increased $A0.04 to $A0.42 on 9 April 2001, following a takeover bid by Ramsay Health Care. - - - RHC managing director, Pat Grier, said the offer was 15.4% greater than Alpha Healthcare's average share price over the previous 90 trading days, and would not be revised
Ramsay in $17.4m bid for rival Alpha
Australasian Business Intelligence April 10, 2001
SOURCE: The Courier-Mail
ABSTRACT: The 9 April 2001 bid, which is being made through Ramsay Health Care's Ramsay Centauri subsidiary, offers $A0.40 in cash per Alpha Healthcare share. - - - - Ramsay Health Care has reportedly already made an agreement with the receivers of Sun Healthcare Group Australia and the Sun Healthcare Group to buy a 19.9 per cent stake in Alpha. - -
Ramsay speeds to Alpha's bedside
The Daily Telegraph TUE 10 APR 2001
PRIVATE hospital rationalisation accelerated yesterday with Ramsay Health Care declaring a bid for minnow opponent Alpha yesterday.ABSTRACT: Australasian Business Intelligence
- - - After the merger Ramsay will hold 18 per cent of the private hospital market in New South Wales
Ramsay in $17.4m cash bid for Alpha
Australasian Business Intelligence April 10, 2001
SOURCE: The Age
ABSTRACT: Ramsay will pay $A0.40 for Alpha shares, the price at which it has agreed to purchase 19.9% of the company from troubled US shareholder, Sun Healthcare Group. Analysts expect the pricing and timing of the deal will ensure its success.
Ramsay swoops on Alpha
Australasian Business Intelligence April 10, 2001
SOURCE: Herald Sun
ABSTRACT: The $A0.40-a-share bid ends months of speculation and was made shortly after Ramsay acquired 19.9 per cent of the company. The bid has valued Alpha at $A17.4m. - - - - Alpha's share price has been traded between $A0.24 and $A0.42 rising on speculation of the takeover. The bid contains a 15.4 per cent premium on the volume weighted average share price over 90 trading days and a 31.4 per cent premium on the average since April 2000
Ramsay makes $64m play for Alpha
The Australian TUE 10 APR 2001
Takeovers RAMSAY Health Care has raised the stakes in the battle to win market share in the private hospitals sector by launching an all-cash bid for rival hospital manager Alpha Healthcare.ABSTRACT: (Australasian Business Intelligence)
- - - valuing the takeover bid at $A17.4m. In addition, Ramsay will assume liability for debts totalling $A47m, including debts associated with Alpha's parent, Sun Healthcare Group. - - - Major shareholders such as Sun Healthcare and James Hardie are expected to accept the offer.
Becoming a substantial holder from RHC - -
ALPHA HEALTHCARE LIMITED
ASX Document date: Wed 11 Apr 2001
Ramsay Centuari Pty Limited became a substantial shareholder in Alpha Healthcare Limited on 09/04/2001 with a relevant interest in the issued share capital of 8,679,400 ordinary shares (19.9%).
Briefs Alpha rejects Ramsay bid
Australian Financial Review 11 Apr 2001
Alpha Healthcare yesterday rejected the $65 million cash and debt bid announced on Monday by Ramsay Healthcare as too low and said that it was in talks with other unnamed parties.
Ramsay holds out for better offer
Australasian Business Intelligence April 11, 2001
SOURCE: The Advertiser
ABSTRACT: On 10 April 2001, a Ramsay Health Care takeover bid was rejected by the board of Alpha Healthcare in Australia.
Alpha rejects Ramsay bid
Australasian Business Intelligence April 11, 2001
SOURCE: The Australian Financial Review
Ramsay offer rejected
Australasian Business Intelligence April 11, 2001
SOURCE: Herald Sun - - - Bruce Brammall
ABSTRACT: Alpha Healthcare directors rejected Ramsay Health Care's takeover bid as "unfit".
Bidder's Statement - Off-market bid from
RHC
Australasian Business Intelligence April 12, 2001
SOURCE: Australian Stock Exchange Announcements
ABSTRACT: A copy of the bidder's statement dated 12 April 2001 has been lodged with the Australian Securities & Investments Commission (ASIC).
Bidder`s Statement - Off-market bid from
RHC - - ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 12 Apr 2001
BLAKE DAWSON WALDRON LAWYERS1.1 OFFER FOR YOUR ALPHA SHARES
Ramsay Centauri offers to acquire all of your Alpha Shares on the terms set out in this Offer.
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1.3 CONSIDERATIONRamsay Centauri offers A$0.40 cash for each of your Alpha Shares.
Ramsay says 40c Alpha's omega
The Australian MON 16 APR 2001
RAMSAY Health Care has ruled out paying any more for takeover target Alpha Healthcare,ABSTRACT: (Australasian Business Intelligence)
On 12 April 2001, Ramsay Health Care sent its bidder's statement to shareholders of takeover target Alpha Healthcare. - - - , Ramsay, already holds 19.9% of Alpha shares which it purchased from Sun Healthcare. It is expecting little difficulty in gaining 90% acceptances although the Alpha board says the company is worth more.
Bidder`s Statement - Off-market bid from
Ramsay Centauri P/L- -ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 26 Apr 2001
RAMSAY HEALTH CARE CHAIRMAN'S LETTER TO ALPHA SHAREHOLDERSI am pleased to enclose the cash Offer from Ramsay Centauri Pty Limited, a wholly-owned subsidiary of Ramsay Health Care Limited, to acquire all of your shares in Alpha Healthcare Limited.
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Ramsay believes that its Offer represents a full and fair price for your Alpha Shares.The Offer represents a premium of 15.4% to the volume weighted average share price over the 90 trading days prior to announcement of the Offer and a premium of 31.4% to the volume weighted average share price over the 12 months prior to announcement of the Offer. Ramsay believes these premiums are understated given the significant takeover speculation which began to influence the Alpha Share price from late November 2000.
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ACQUISITION OF ALPHA SHARES AND DEBTYou should be aware that Alpha's largest shareholder, the Receiver and Manager of Sun Healthcare Group Australia Pty Limited, has agreed to sell approximately 19.9% of the issued ordinary shares of Alpha to Ramsay at $0.40 per share.
Importantly, Ramsay has also agreed to acquire debt owed by the Alpha group with an aggregate book value of approximately $31 million at a total price of approximately $11 million from the Receiver and Manager of Sun Healthcare and SHG Holdings Pty Limited, and from subsidiaries of James Hardie Industries Limited. The full amount of this debt will be payable by Alpha to Ramsay.
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WHAT HAPPENS IF I DO NOT ACCEPT?If Ramsay Centauri becomes entitled to acquire your Alpha Shares compulsorily under the Corporations Law, it intends to do so. If your Alpha Shares are compulsorily acquired, you will be paid later than Alpha shareholders who chose to accept the Offer.
If Ramsay Centauri does not become entitled to compulsorily acquire your Alpha Shares, you will remain a shareholder in Alpha.
Westmead Private Hospital Profitable &
Discussions with Ramsay - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 26 Apr 2001
The Board of Alpha Healthcare Limited (Alpha) is pleased to announce that Alpha's Westmead Private Hospital (a 136 bed collocated private teaching hospital) has recorded a profit at EBIT level for the first time in March. This is in line with Alpha's expectations.
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RAMSAY HEALTHCARE BIDIn terms of the current takeover bid by Ramsay Healthcare Limited, Alpha is still in discussions that may lead to a higher offer for the Company.
Alpha's Directors have already indicated to shareholders and the rest of the market that their intention is to recommend that shareholders reject Ramsay's offer as it does not represent fair value for the Alpha stock.
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Alpha shareholders are again advised by the Directors of Alpha to do nothing in respect of Ramsay's offer until they receive and consider the Directors' formal recommendation.
Letter to Alpha Shareholders - Ramsay
Healthcare Bid - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 26 Apr 2001
LETTER TO SHAREHOLDERSShortly you will receive a document from Ramsay Healthcare Limited (Ramsay), in the form of a Bidder's Statement, proposing to acquire from you all of your shares in Alpha Healthcare Limited (Alpha) for 40 cents per share.
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At the date of this letter, we advise that shareholders should reject the offer.The Target Statement will include a formal recommendation from your Directors to you as to why you should reject Ramsay's offer together with supporting reasons. Until you receive the Target Statement you should do nothing in respect of Ramsay's offer.
Investors chase hospital profits
Australasian Business Intelligence April 27, 2001
SOURCE: The Australian - - - Maurice Dunlevy
ABSTRACT: In April 2001, the private hospital sector is a booming segment of the Australian property market. Alpha Healthcare is the target of a $A64m takeover by Ramsay Health Care, while Mayne Nickless has paid $A192m for Australian Hospital Care. Meanwhile, Australian Unity has made its $A105m healthcare property trust available to retail investors. Companies such as Mayne control a large share of the private hospitals market, although traditional operators such as churches and charities continue to play a significant role in health care. Private hospitals have also benefited from the Australian Government's Lifetime Health Cover policy, which has led to 46 per cent of Australians taking out private health insurance
Takeover target Alpha in talk to get a
higher offer
AAP NEWSFEED April 26, 2001
Takeover target Alpha Healthcare today said it was still in talks with rival Ramsay Health Care Ltd in a bid to get a higher offer.Alpha managing director Mark Compton said company directors had already indicated their intention to recommend shareholders reject Ramsay's offer.
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He said the offer was not sufficient because it did not reflect the benefits which would flow from Ramsay's heavily discounted purchase of debt from the Receiver of Alpha's distressed shareholder Sun Healthcare.
Alpha still trying to extract higher
offer
Australasian Business Intelligence April 27, 2001
SOURCE: The Age
ABSTRACT: - - - Shareholders have been advised to wait for the formal recommendations of Alpha's directors. Directors are in discussions in April 2001 to try to secure a higher offer. - - -
Alpha talks go on
Australasian Business Intelligence April 27, 2001
SOURCE: The Australian Financial Review
ABSTRACT: Australia's Alpha Healthcare is negotiating to extract a better takeover deal than the one proposed in April 2001 by Ramsay Health Care
Alpha talks of new suitor
Australasian Business Intelligence April 27, 2001
SOURCE: The Australian
ABSTRACT: On 26 April 2001, Australia's Alpha Healthcare intimated that Ramsay Health Care may face a rival bidder. - - - another offer may be forthcoming, and advised shareholders to delay accepting Ramsay's offer for the moment.
AUSTRALIA S RAMSAY HEALTH CARE REMAINS
CONFIDENT IN ALPHA BID
ASIA PULSE April 30, 2001
Australia's Ramsay Health Care Ltd remains confident of snaring Alpha Healthcare Ltd - despite signals the hospital management group will not go down without a fight.
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Alpha today said it was in talks over the weekend with a major private healthcare provider which was expected to result in a rival bid for the group."Alpha now anticipates that an offer will be announced shortly for all its shares, at a price in excess of the price currently being offered by Ramsay Centauri Pty Ltd," the company said in a statement.
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Ramsay managing director Pat Grier today remained defiant the bid would not go any higher, saying the company would settle its purchase of 19.9 per cent of Alpha shares on Thursday."There might be discussions, but at this stage there is only one offer on the table," Mr Grier told AAP.
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Mr Grier said Ramsay had reached an agreement with the receiver of Sun Healthcare Group Australia Pty Ltd and SHG Holdings Pty Ltd.Under the deal, Ramsay will also acquire A$ 31 million (US$ 15.7 million) of debt owed by Alpha for about A$ 11 million (US$ 5.57 million) from Sun Healthcare and James Hardie Industries.
"From this Thursday we will have 19.9 per cent of (Alpha's) shares," Mr Grier said.
"Anybody after that (Thursday) has to deal with us," he said.
He added he was very confident Ramsay would be able to pick up the remaining Alpha shares.
Announcement re New Offer - - - ALPHA
HEALTHCARE LIMITED
ASX Document date: Mon 30 Apr 2001
Following upon its announcement on 26 April 2001, Alpha Healthcare Limited advises that further discussions took place over the weekend with a major private healthcare provider. Alpha now anticipates that an offer will be announced shortly for all its shares, at a price in excess of the price currently being offered by Ramsay Centauri Pty Ltd.
NEW BID EXPECTED FOR AUSTRALIA S ALPHA
HEALTHCARE
ASIA PULSE April 30, 2001
Alpha Healthcare Ltd (ASX: ALA) said it expects a rival bid to result from talks it conducted over the weekend with a major private healthcare provider.
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Ramsay Health Care Ltd is offering 40 cents per share for Alpha, but the target has said the bid does not reflect its underlying value.Alpha shares are five cents higher at 47 cent at 1115 AEST. Ramsay shares are half a cent lower at $ A2.195 ($ US1.11).
Response to Ramsay`s Bidder`s Statement -
- -ALPHA HEALTHCARE LIMITED
ASX Document date: Mon 30 Apr 2001
BARON PARTNERS LIMITEDBaron Partners is the corporate adviser to Alpha Healthcare Limited ("Alpha"). On behalf of our client please find attached a copy of a document which is being despatched to Alpha shareholders today.
WHAT RAMSAY HAS FORGOTTEN TO TELL YOU!!
The claims in Ramsay's Bidder's Statement omit important facts.
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Cash premium:- 2 cents is not a significant premium on the pre-offer closing price of 38 cents.Net tangible asset backing Alpha NTA - 82 cents :::: Ramsay Offer - 40 cents. Ramsay is trying to buy your shares at a 50% discount
Alpha's share price :::: In common with all listed hospital companies including Ramsay), Alpha's share price increased substantially (from 20 cents to 38 cents) before Ramsay's offer reflecting a positive investor sentiment towards the private hospital sector. Since the offer was announced Alpha's share price has been consistently above Ramsay's offer price!
Alpha's financial performance:::::Alpha has been restructured over the past 18 months by a new management team. Current profitability from established hospitals is strong - Westmead was earnings positive in March 2001 and is expected to contribute strongly to earnings in future periods.
Alpha's gearing ::::: In the next 3 months, Alpha will have reduced its operating debt to less than $3 million. Debt against Westmead Private is limited recourse project debt, largely due to be repaid in 2010 (9 years' time!)
In addition to the above, Ramsay has forgotten to tell you:
Cost and efficiency benefits to Ramsay, through administrative savings, exceed 40 cents per share - in other words, Ramsay's offer price will be fully paid for by these cost savings alone.
The benefit of the discount on the debt Ramsay acquired, equivalent to over 40 cents per Alpha share, will accrue to Ramsay instead of to Alpha shareholders.
Alpha is operating cash flow is positive and Alpha will have reduced its debt (excluding project debt) to less than $3 million within 3 months.
Reject Ramsay's Offer. It is too low.
RHC`s ann: Ramsay to settle on 19.9% - - - RAMSAY HEALTH CARE LIMITED
ASX Document date: Mon 30 Apr 2001Ramsay Health Care Limited (Ramsay) notes the announcement today by Alpha Healthcare Limited (Alpha) in relation to a possible alternative offer for Alpha's shares.
Ramsay wishes to advise that settlement of its pre-bid agreement with the Receiver and Manager of the Sun Healthcare Group is scheduled to occur on or before Thursday, 3 May 2001.
Ramsay will then own 19.9% of Alpha's shares and will own a significant part of Alpha's outstanding debt. Alpha and its associated entities will then owe Ramsay the following debts, which in both cases have recourse to Alpha:
- Westmead debt (approximately $18 million) - Alpha corporate debt (approximately $7.25 million)
The Alpha corporate debt is due and payable on 31 July 2001.
In addition, Ramsay intends to complete settlement of its pre-bid agreement with James Hardie Industries Limited on or before Friday, 11 May 2001. Alpha will then owe Ramsay the full outstanding amount of the James Hardie debt.
Ramsay believes its offer of 40 cents per Alpha share represents a full and fair price for Alpha's shares.
Alpha rides high on `white knight'
news
Financial Review 01 May 2001
Shares in takeover target Alpha Healthcare surged 14 per cent yesterday after the company revealed it was in advanced discussions with a potential ``white knight" bidder that could trump Ramsay Health Care's all-cash bid for the company. AustralianABSTRACT: (Australasian Business Intelligence)
Alpha Healthcare announced that it was involved in discussions with a possible second bidder for the company.
Review of bidders statement sent by Ramsay
- - -ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 01 May 2001
The Directors of Alpha Healthcare Limited ("Alpha") wish to advise shareholders that, upon review of the Bidders Statement sent by Ramsay Centauri Pty Limited ("Ramsay") to Alpha shareholders, they are of the view that the Bidder's Statement fails to comply with the requirements of the Corporations Law on a number of material grounds.Accordingly, Alpha has instructed its solicitors to seek an undertaking from Ramsay, to be provided no later than 5.00pm tomorrow, to the effect that Ramsay will:
1. immediately withdraw the Bidders Statement and, in doing so, notify both the Australian Stock Exchange Limited and the Australian Securities & Investment Commission of such withdrawal, and
2. only make any further offer for shares in Alpha, by preparing, lodging and issuing a replacement Bidders Statement that has corrected each and every one of the above mentioned grounds of non-compliance.
Shareholders will be advised further when the matter has been addressed by Ramsay."
Alpha expects offer to rival Ramsay
bid
Australasian Business Intelligence May 1, 2001
SOURCE: The Australian
ABSTRACT: On the weekend of 28-29 April 2001, Alpha's management held discussions with a major private health-care company. - - - - he (Mark Compton) believes that the company could make an offer in the near future. Healthscope has ruled out a bid for Alpha, while Mayne Nickless is not expected to be a contender.
Alpha rejects statement
Australasian Business Intelligence May 2, 2001
SOURCE: The Australian Financial Review
ABSTRACT: On 1 May 2001, the board of Australia's Alpha Healthcare urged predator, Ramsay Health Care, to withdraw its bidder's statement over alleged irregularities - - -
Alpha claims law breach
Australasian Business Intelligence May 2, 2001
SOURCE: The Australian
ABSTRACT: Australia's Alpha Healthcare claims that Ramsay Health Care's bidder's statement breaches corporate regulations. Alpha has requested Ramsay to withdraw the document by the close of business on 2 May 2001. Mark Compton, Alpha's CEO, says that amongst other things, the document failed to include details of Ramsay's deal to acquire a 19.9 per cent stake in Alpha from Sun Healthcare, which collapsed in October 2000.
Change in substantial holding from RHC - -
ALPHA HEALTHCARE LIMITED
ASX Document date: Wed 02 May 2001
Ramsay Centauri Pty Ltd increased its relevant interest in Alpha Healthcare Limited on 01/05/2001, from 8,679,400 ordinary shares (19.9%) to 16,347,767 ordinary shares (37.5%).
RHC`s ann:Ramsay entitled to 37.5% of
ALA/OfferUnconditional - - ALPHA HEALTHCARE LIMITED
ASX Document date: Wed 02 May 2001
Ramsay Health Care Limited has declared its offer for Alpha Healthcare Limited unconditional after becoming entitled to a relevant interest of 37.5%.The Receiver and Manager of the Sun Healthcare Group has accepted into Ramsay's offer for Alpha for the balance of its holding, having previously entered into an agreement with Ramsay to sell an initial 19.9% of its Alpha stake before Ramsay announced its intention to bid for Alpha on 9 April, 2001.
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"We believe we are in a strong position to complete this takeover successfully, given our relevant interest in the shares and our agreement to purchase approximately $31 million of Alpha debt. The full amount of this debt is payable by Alpha to Ramsay," Mr Grier said.
Ramsay says Alpha offer unconditional
Australian Financial Review 03 May 2001
Private health care operator Ramsay Healthcare said yesterday its offer for Alpha Healthcare was unconditional after becoming entitled to a 37.5 per cent interest in the company. Alpha on Tuesday said it had instructed its solicitors to seek an undertaking from Ramsay to withdraw its bidder's statement - - -
Ramsay moves on Alpha
Australasian Business Intelligence May 3, 2001
SOURCE: Herald Sun
Ramsay gains 37.5pc of Alpha
Australasian Business Intelligence May 3, 2001
SOURCE: The Australian
ABSTRACT: On 2 May 2001,- - - Sun Healthcare accepted the offer of $A0.40 per share for its 18 per cent stake in Alpha, a private hospital operator. This has given Ramsay a 37.5 stake in Alpha, allowing it to declare the bid unconditional. Ramsay had required acceptances for 29.2 per cent of Alpha's issued shares in order for the takeover to become unconditional.
Ramsay says Alpha offer unconditional
Australasian Business Intelligence May 3, 2001
SOURCE: The Australian Financial Review
ABSTRACT: Alpha Healthcare wants clarification of a bid from Ramsay Healthcare in early May 2001. - - - Sun Healthcare, the embattled US owner of Alpha, has welcomed Ramsay's bid, which would raise its ownership to 37.5 per cent. According to Ramsay management, Alpha's receiver and creditors accept the bid. The private hospital operator says that its bidder's statement is satisfactory, and its bid unconditional
Further to ann. 30/4/01: Advice from
Network Heathcare Hldgs - - ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 03 May 2001
Further to its announcement of 30 April 2001, Alpha Healthcare Limited ("Alpha") has been advised by Network Healthcare Holdings Limited ("Netcare"), a Johannesburg Stock Exchange listed company that on 1 May 2001 Netcare made an offer to Ernst & Young, the Receiver and Manager of Sun Healthcare Australia Pty Limited (Receiver and Manager appointed), ("Sun Healthcare") to acquire its shareholding in Alpha of 6,498,000 shares representing 14.9% of Alpha's issued capital.Netcare is South Africa's largest private hospital and doctor network
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Alpha has been advised by Netcare that its offer was priced at 45 cents per share (5 cents being 12.5% above the offer from Ramsay Centauri Pty Limited ("Ramsay")) for immediate unconditional settlement in respect of 14.9% of Alpha shares. Netcare made the same offer for the balance of shares in Alpha (3.4%) held by Sun Healthcare, which was subject to Foreign Investment Review Board approval, but gave a full price indemnity in the event such approval was not granted.Furthermore, Netcare has advised Alpha that it undertook to Ernst & Young to make a takeover offer at 45 cents per Alpha share conditional upon assignment of certain debts due by Alpha to Sun Healthcare and certain regulatory approvals.
Netcare has advised Alpha that the 45 cents per share offer was rejected by Ernst & Young without discussion. Ramsay has subsequently acquired the Sun Healthcare shareholding at 40 cents per share (5 cents less than the Netcare offer).
We have received a letter from Netcare on 2 May 2001, which reads as follows: "This letter serves to confirm that the terms of the written offer made to Sun Healthcare Australia (Pty) Ltd's Receiver and Manager dated 1 May 2001 remains current and available, in the event that the offer was capable of acceptance, notwithstanding that Sun's Receiver has accepted Ramsay's offer and the Ramsay bid has been made unconditional."
As previously announced Alpha has received legal advice that the purported offer for all of Alpha's issued capital by Ramsay fails to satisfy a number of the requirements of the Corporations Law. Alpha is seeking further advice in respect of the status of Ramsay's offer.
In the meantime Alpha strongly advises its shareholders to continue to reject the Ramsay offer pending the outcome of the above.
Alpha - 45 cent offer rejected by Sun
Healthcare administrators
AAP NEWSFEED May 3, 2001,
Takeover target Alpha Healthcare today said a 45 cent per share offer for a slice of its shareholding was rejected in favour of a lesser offer.South African company Network Healthcare Holdings Ltd (Netcare) made the offer to the receiver of Alpha's major shareholder Sun Healthcare Australia Pty Ltd, Ernst & Young, on Tuesday in a bid to acquire a 14.9 per cent stake in Alpha, Alpha said today.
Netcare also undertook to Ernst & Young to make a takeover offer at 45 cents per Alpha share conditional upon assignment of certain debts due by Alpha to Sun Healthcare and regulatory approval, Alpha said.
"Netcare has advised Alpha that the 45 cents per share offer was rejected by Ernst & Young without discussion," Alpha said in a statement today.
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Alpha said Netcare's offer remained current and available.Alpha said it had received legal advice that the offer for all of Alpha's issued capital by Ramsay failed to satisfy a number of Corporations' Law requirements.
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Ramsay is due to finalise its deal with Sun Healthcare's receivers for its initial 19.9 per cent stake in Alpha today.Under the deal Ramsay would also acquire $31 million of debt owed by Alpha for about $11 million from Sun Healthcare and James Hardie Industries.
Submission to Corp/Securities Panel
re:Alpha Bid - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 03 May 2001
Further to its previous announcements, the Directors of Alpha Healthcare Limited ("Alpha"), after obtaining advice from Alpha's legal advisers (Coudert Brothers), have made a submission to the Corporations and Securities Panel in respect of Ramsay Centauri Pty Ltd's ("Ramsay") purported bid for Alpha.The submission details Alpha's concerns with Ramsay's purported bid regarding a number of material issues of non-compliance with the Corporations Law.
Takeovers board to examine Alpha bids
Sydney Morning Herald 04 May 2001
Ramsay Healthcare's hostile takeover bid for private hospital company Alpha Healthcare is headed to the Takeovers Panel after a dispute erupted over a potentially higher bid from a South African player.ABSTRACT: (Australasian Business Intelligence)
- - - Ramsay has a 37.5% stake in the Australian private hospital company, which it acquired from the receiver of Alpha's biggest shareholder, Sun Healthcare Australia, for $A0.40 a share. However, on 3 May 2001, Alpha revealed that South Africa's Network Healthcare Holdings had earlier made a $A0.45-a-share offer for the stake to the receiver, Ernst & Young, but the offer was rejected because of "complexities" and "uncertainties". The receiver, John Gibbons, said he had fulfilled his obligations by selling the stake to Ramsay
Higher bid for share in Alpha
Australian Financial Review 04 May 2001
The battle for Alpha Healthcare took a new twist yesterday when it was revealed a higher offer for part of the major shareholder's stake was rejected just before Ramsay Health Care took control. Netcare, South Africa's largest private hospital, made a 45?-a-share offer to the receiver and managerABSTRACT: Australasian Business Intelligence
- - Instead, Ernst and Young chose to accept the $A0.40 per share offer from Ramsay Healthcare for the 37.5% stake, which it acquired in two tranches. John Gibbons, the receiver and manager of Sun Healthcare, said the lower bid from Ramsay Healthcare was accepted because it offered "greater certainty". Under foreign investment laws, 14.9% was the maximum stake that Netcare could acquire in Alpha Healthcare without seeking consent from the Foreign Investment Review Board
BHP just shades Billiton in the
information stakes
Australasian Business Intelligence May 4, 2001
SOURCE: The Australian
ABSTRACT: Meanwhile, Sun Healthcare's receiver, Ernst & Young's John Gibbons, has been criticised for accepting Ramsay Health Care's offer of $A0.40 per share for Sun's stake in Alpha Healthcare. South Africa's Network Healthcare Services made a higher offer, of $A0.45 per share, which was rejected
Higher bid for share in Alpha
Australasian Business Intelligence May 4, 2001
SOURCE: The Australian Financial Review - - - Leon Lester
ABSTRACT: It was revealed on 3 May 2001 that Netcare had made an offer to acquire a 14.9% stake in Alpha Healthcare. -
Offer of 45 cents a share rejected, Alpha
claims
Australasian Business Intelligence May 4, 2001
SOURCE: The Age
ABSTRACT: - - Alpha said South African-based Network Healthcare Holdings (Netcare) has approached the receiver of Sun Healthcare Australia with a bid - - - . This offer is conditional on the outcome of debts which Sun Healthcare expects from Alpha. However, the receiver, Ernst & Young, rejected the offer without any discussion.
Panel to scrutinise Ramsay bid
The Australian FRI 04 MAY 2001
THE Takeovers Panel has been asked to probe Ramsay Health Care's bid for Alpha Healthcare amid concerns that accounting firm Ernst & Young did not pursue an alternative bid for Alpha.ABSTRACT: Australasian Business Intelligence
- - Alpha's management has expressed concern that the bid may breach Australia's Corporations Law. There have been allegations that Ernst & Young, the receivers of Alpha's majority shareholder, Sun Heathcare, failed to consider alternative offers for Sun's 37.5 per cent stake in Alpha. On 3 May 2001, South Africa-based Network Healthcare Holdings (Netcare) indicated that it made an informal offer for the stake prior to Ramsay's offer. However, Ernst & Young later struck a deal with Ramsay for a major part of Sun's stake. Netcare then offered to buy the remaining 18 per cent stake in Alpha, but the offer was rejected
Letter to Alpha Shrhldrs - Continue to
reject Ramsay offer - - ALPHA HEALTHCARE LIMITED
ASX Document date: Mon 07 May 2001
There have been a number of important recent developments which you need to be aware of. These have been reported widely in the press. In summary:ANOTHER POTENTIAL BIDDER
* The potential for a higher offer has emerged. One party, which has identified itself publicly is Network Healthcare Holdings Limited ("Netcare").
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POSSIBLE PROBLEMS WITH RAMSAY'S OFFER?* The Directors of Alpha have received legal advice that certain aspects of Ramsay's bid may have breached the Corporations Law. Accordingly, Alpha has referred the matter to the Corporations and Securities Panel for scrutiny. We await the findings of that review.
RHC`s ann:Alpha Healthcare - Settlement of
Pre-Bid Agreement - - ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 08 May 2001
Ramsay Health Care Limited advises that the settlement of its pre-bid agreement with the Receiver and Manager of Sun Healthcare Group in relation to the purchase of debt and equity in Alpha Healthcare Limited occurred today.As a result of this and previously advised acceptances under its offer for Alpha, Ramsay is now entitled to 37.7% of Alpha's issued shares and owns a significant part of Alpha's outstanding debt.
RHC's ann:Alpha Healthcare - Settlement of
Pre-Bid Agreement
Australasian Business Intelligence May 8, 2001
SOURCE: Australian Stock Exchange Announcements
ABSTRACT: --- Correction Appended
Australian listed firm, Ramsay Healthcare, announced that a pre-bid agreement had been finalised on 8 May 2001. The healthcare company has completed arrangements with the receiver and manager of Sun Healthcare, concerning the acquisition of Alpha Healthcare's debt and equity.
Clarfication re:possibility of competing
t/o bid by Netcare - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 08 May 2001
At the request of the Corporations and Securities Panel (the "Panel"), the Directors wish to clarify previous statements to the market in relation to the potential of a higher offer from Network Healthcare Holdings Limited ("Netcare").The Receiver for Sun Healthcare Australia Pty Limited, by accepting Ramsay's offer in relation to the balance of its shareholding in Alpha, has also completed the assignment of certain loans made by Sun Healthcare to Alpha.
In the absence of this assignment being unwound by the Panel or Network Healthcare Holdings Limited ("Netcare") withdrawing the requirement that it obtain an assignment of those loans as a pre-condition to it making a takeover bid at 45 cents per share for all Alpha shares, there is no basis for the Directors to believe that Netcare will make a takeover bid for Alpha shares under the terms previously disclosed to the market. Furthermore, at the present time, the Directors are unable to express any view as to the likelihood of either of the events referred to above, occurring.
Clarification re:possibility of competing
t/o bid by Netcare
Australasian Business Intelligence May 8, 2001
SOURCE: Australian Stock Exchange Announcements
ABSTRACT: Australian listed firm, Alpha Healthcare, released on 8 May 2001 an announcement clarifying a possible takeover offer. The hospital management company issued the announcement at the request of the Corporations and Securities Panel. - - - - The company notes that the receiver of Sun Healthcare, in accepting Ramsay's bid for its shares in Alpha Healthcare, also finalised the assignment of loans made to the company by Sun Healthcare. The company's directors note that, unless this assignment is unwound by the Panel or Netcare withdraws the condition that it obtains the assignment of these loans before making any bid, that there exists no basis for their belief that Netcare will announce a bid for the company under the terms previously revealed to the stock market by the company
Alpha to fight on
Australasian Business Intelligence May 9, 2001
SOURCE: The Australian Financial Review
ABSTRACT: In Australia, Alpha Healthcare on 8 May 2001 pledged to continue fighting a $A0.40-a-share takeover bid by Ramsay Health Care, despite the absence of a counter bidder
Netcare spurned in favour of lower offer
from Ramsay
Australasian Business Intelligence May 15, 2001
SOURCE: The Australian Financial Review
ABSTRACT: Australia's Takeovers Panel on 15 May 2001 announced the result of its probe into a health sector acquisition plan. - - - - - The panel's probe has delayed the sending of Alpha's Target Statement to shareholders. The Australian Securities & Investments Commission has extended only until 18 May 2001
Ref's call near on Ramsay's Alpha try
The Australian TUE 15 MAY 2001
THE Takeovers Panel could announce as early as today whether Ramsay Healthcare's bidder's document for Alpha Healthcare breaches Corporations Law. Alpha claims Ramsay's document contains inadequate disclosure.ABSTRACT: (Australasian Business Intelligence)
- - - Amongst other things, Alpha claims that Ramsay should have disclosed the nature of its relationship with Sun Healthcare's receiver, Ernst & Young. The accounting firm also acts as Ramsay's auditors. - - - -
Complaint over Ramsay's bid - - -
Glenda Price
The Australian, 05/16/2001
AS the Takeovers Panel mulls over whether Ramsay Health Care's bidder's document for Alpha Healthcare breaches Corporations Law, the deal has become the subject of a formal complaint to the Australian Securities and Investments Commission.ASIC declined to say whether or not it was investigating the complaint but a spokeswoman said the commission had made a submission to the the Takeovers Panel on the Ramsay/Alpha deal.
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Alpha Healthcare alleges that Ramsay's bidder's statement breached Corporations law because it contained inadequate disclosure.However, the Takeovers Panel is believed to be reviewing the wider issues involved in the deal, including whether Ernst & Young, the receiver of Sun Healthcare's 38 per cent stake in Alpha, obtained the highest possible bid for Sun's stake and for its debt holding in Alpha.
Ernst & Young is also Ramsay Health Care's auditor.
But a NSW-based Alpha shareholder, Howard Patrick, has made a formal complaint to ASIC.
The basis of the complaint is whether Ernst & Young made a similar offer to Alpha to buy the debt at a discount as it made to Ramsay, and if not, why not, given ``Alpha shareholders may well have been willing to pay even more'' for the debt and Sun's shares than Ramsay.
Extension to despatch date of Target
Statement to s/holders - - ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 17 May 2001
The Directors of Alpha Healthcare Limited ("Alpha"), advise that the Australian Securities and Investments Commission has declared an extension to the date by which Alpha must dispatch its Target's Statement to Shareholders in response to the bid by Ramsay Centauri Pty Ltd ("Ramsay") until 23 May 2001.
Corporations & Securities Panel
Declines Alpha`s Application - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 22 May 2001
Alpha Healthcare Limited ("Alpha") has today received notification from the Corporations and Securities Panel (the "Panel") that it has declined to make a declaration of unacceptable circumstances in relation to Ramsay Healthcare's bid for Alpha.Alpha notes the intensive deliberations the Panel has undertaken in considering this matter and will review the Panel's reasons for its decision as soon as they become available which it is anticipated will be next week.
Ramsay welcomes Panel rejection of Alpha
application - - - ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 22 May 2001
Leading Australian hospital operator Ramsay Health Care Limited today welcomed the decision by the Takeovers Panel to dismiss an application by Alpha Healthcare Limited that Ramsay withdraw its takeover offer for Alpha."Alpha committed considerable resources to a lengthy Panel hearing that in the end proved to be futile and an inappropriate use of their shareholders' funds," Ramsay Managing Director Pat Grier said.
"We reject totally any suggestion that our bid was inappropriately structured. It complies with the law and market practice. The Panel process has been an unnecessary and unfortunate distraction for Alpha shareholders and we look forward to a timely completion of the offer," Mr Grier said.
"The fact remains that Ramsay is the only company with an offer on the table for Alpha. Ramsay is in a strong position to successfully complete the transaction, given its entitlement to 37.9% of Alpha's shares and its ownership of a significant part of Alpha's outstanding debt," he said.
Alpha motion rejected
The Herald Sun, 05/23/2001
The Takeovers Panel yesterday rejected Alpha's application that Ramsay withdraw its 40-a-share bid, which values the target at $17 million.
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``Alpha committed considerable resources to a lengthy panel hearing that in the end proved to be a futile and an inappropriate use of their shareholders' funds,'' Ramsay managing director Pat Grier said.``The panel process has been an unnecessary and unfortunate distraction for Alpha shareholders and we look forward to a timely completion of the offer.''
ABSTRACT:Australasian Business Intelligence
An application by Alpha Healthcare to have a takeover bid for it withdrawn was rejected on 22 May 2001. - - - - Mark Compton, the MD of Alpha Healthcare, said he was "disappointed" by the Panel's decision.
Ramsay still in the Alpha hunt
Australasian Business Intelligence May 23, 2001
SOURCE: The Daily Telegraph
ABSTRACT: - - The panel rejected the application on 22 May 2001, prompting Ramsay to criticise Alpha for having spent hundreds of thousands of dollars on a futile application. Ramsay categorised this as an inappropriate use of investors' funds.
ALA- Notice re Extension of offer - ASX
Company Announcement
AAP NEWSFEED May 24, 2001, Thursday
EXTRACTS ONLY
6. Delete sub-clause (a) of clause 7.1 of Section 2 of the Original Statement and substitute:(a) Alpha and Sun Healthcare entered into a Loan Agreement dated 10 December 1997 (as amended on 22 January 1998 and 6 June 2000) pursuant to which Sun Healthcare agreed to advance to Alpha up to $10 million (the "Alpha Loan Agreement"). Repayment of that loan is secured by charges given by Health Care Corporation Pty Limited and Alpha Pacific Hospitals Pty Limited in favour of Sun Healthcare dated 18 December 2000 (as amended on 18 January 2001). On 14 May 2001 Alpha's solicitors informed Blake Dawson Waldron, Ramsay Centauri's solicitors, that the amount owing under the Alpha Loan Agreement was approximately $7,250,000.
Pursuant to the Pre-Bid Acquisition Agreement, on 8 May 2001 Sun Healthcare assigned to Ramsay Centauri all of its right, title and interest in the Alpha Loan Agreement and the charges securing the repayment of loans advanced under that agreement in consideration of the sum of $5 million."
7. Delete sub-clause (b) of clause 7.1 of Section 2 of the Original Statement and substitute:
(b) SHG Holdings and Alpha Westmead entered into a Loan Agreement dated 18 November 1998 pursuant to which SHG Holdings agreed to provide financial accommodation to Alpha Westmead in connection with the construction of the Alpha Westmead Private Hospital (the "Alpha Westmead Loan Agreement"). Alpha provided a guarantee and indemnity in favour of SHG Holdings in respect of repayment of that loan. On 14 May 2001 Alpha's solicitors informed Blake Dawson Waldron, Ramsay Centauri's solicitors, that the amount owing under the Alpha Westmead Loan Agreement was approximately $18,500,000.
Pursuant to the Pre-Bid Acquisition Agreement, on 8 May 2001 SHG Holdings assigned to Ramsay Centauri all of its right, title and interest in the Alpha Westmead Loan Agreement and the guarantee and indemnity securing the repayment of loans advanced under that agreement in consideration of the sum of $1,133,333."
8. Add the following sentences to the end of sub-clause 7.1 (c) of Section 2 of the Original Statement:
"Completion of the purchase of debt under the Debt Assignment Agreement occurred on 3 May 2001. Prior to that completion Alpha repaid the Ecanif Loan in full. On 8 May 2001 Alpha discharged the RCI Debt in full, being an amount of $2,405,966.98."
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11. Add the following heading and paragraphs immediately after the paragraph in clause 7.4 of Section 2 of the Original Statement: 7.5 Corporations and Securities Panel Proceedings On 3 May 2001 Alpha applied to the Corporations and Securities Panel (the "Panel") for a declaration of unacceptable circumstances to be made pursuant to section 657A of the Corporations Law in relation to the Offer, the affairs of Ramsay Centauri, Ramsay and Alpha, and for orders to be made under section 657D of the Corporations Law requiring Ramsay Centauri to withdraw its Offer and for Ramsay Centauri, Ramsay, Sun Healthcare and SHG Holdings to be restored to the position they were in immediately before their entry into the Pre- Bid Acquisition Agreement. On 21 May 2001 the Panel declined all of Alpha's applications. The Panel considered that:* Ramsay Centauri's acquisition of the second parcel of 17% of Alpha Shares did not take place other than under the terms of the Offer;
* the Pre-Bid Acquisition Agreement did not adversely affect the market for control of Alpha; and
* Ramsay Centauri's acquisitions from SHG Holdings and Sun Healthcare under the Pre-Bid Acquisition Agreement (specifically of debts and the first 19.9% parcel of Alpha Shares) did not show any transfer of value between the debt and equity components bought by Ramsay Centauri."
Target's Statement - - ALPHA HEALTHCARE
LIMITED
ASX Company Announcement 25 May 2001
MESSAGE FROM CHAIRMANAs you are aware, Ramsay has launched an offer for Alpha at a price of 40 cents per share. The Directors unanimously* recommend that you Accept the Offer in the absence of a higher offer. The Directors are making this recommendation because they consider that there are substantial risks involved in not accepting the Offer.
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*- - - if Ramsay fails to agree to vary the terms of Alpha's outstanding debt, that Alpha's debt restructuring may not be successfully completed by 31/07/2001. Ramsay could then seek to force Alpha to make asset sales leading to a serious destabilisation of Alpha's financial position - - -* that after the close of the Offer, Alpha's share price may fall below Ramsay's offer price of 40 cents per share;
* that there may not be a further offer for all Alpha shares at a price greater than 40 cents per Alpha Sharein the forseeable future;
* that the liquidity of the market for Alpha's shares may be adversely impacted by the level of Ramsay's ownership in Alpha at the close of the Offer
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In making this recommendation, the Directors consider that the risks identified above outweigh the potential for Alpha's long term growth through Westmead Private Hospital.
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Shareholders should be aware that your Directors who presently own Alpha shares will not be accepting the Ramsay Offer
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The Panel has resolved that Ramsay's bid did not amount to "unacceptable circumstances" - - - - the Directors believe that it is very unlikely that Alpha shareholders will now receive an alternative bid for their Alpha shares.
Alpha fails to deter Ramsay
Australasian Business Intelligence May 25, 2001
SOURCE: The Australian
ABSTRACT: Australia's Takeovers Panel dismissed an application on 24 May 2001 - - - - Grier expects that there will be significant acceptance of the offer in the absence of rival bids
Ramsay extends bid
Australasian Business Intelligence May 25, 2001
SOURCE: The Australian Financial Review
ABSTRACT: Australian firm, Ramsay Healthcare, announced on 24 May 2001 that it would extend its bid for Alpha Healthcare. Its bid will now close on 8 June 2001
Alpha finally bows to Ramsay
Australasian Business Intelligence May 26, 2001
SOURCE: The Courier-Mail - - Karen Michelmore
Alpha recommends Ramsay takeover
Australian Financial Review 28 May 2001
Alpha accepts offer
The Advertiser, 05/26/2001
Alpha Healthcare recommended its shareholders accept predator Ramsay Health Care's takeover offer. In a major backflip after vehemently opposing the offer, Alpha directors ``unanimously recommended'' shareholders accept the 40c a share offer yesterday. They said there were ``substantial risks in not accepting the offer''.
Ramsay welcomes Alpha directors`
recommendation - - ALPHA HEALTHCARE LIMITED
ASX Document date: Mon 28 May 2001
Change in substantial holding from RHC - -
- ALPHA HEALTHCARE LIMITED
ASX Document date: Thu 31 May 2001
Ramsay Centauri Pty Limited increased its relevant interest in Alpha Healthcare Limited on 30/05/2001, from 21,256,847 ordinary shares (48.7%) to 22,371,067 ordinary shares (51.3%).
Board Changes - - - ALPHA HEALTHCARE
LIMITED
ASX Document date: Thu 31 May 2001
In accordance with Listing Rule 3.16.1, we advise that the following individuals were appointed as directors of Alpha Healthcare, effective immediately.
- Ian Patrick Grier
- Bruce Roger Soden
- Michael Stanley Siddle
The following directors retired also effective immediately:-
- Mark Raymond Compton
- Barrie Robert Martin
- Patrick Charles Dymock
- Elliott Graham Wayne Wright
Letter to Shareholders re Takeover Update
- - ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 05 Jun 2001
As you consider the offer, we wanted to ensure you were aware of some recent significant developments:
- * Ramsay's offer has been recommended by the Alpha Board of Directors.
- * Ramsay is now entitled to over 60% of Alpha's shares.
- * All of Alpha's major shareholders have now accepted the offer.
- * Directors of Alpha have said there are substantial risks for Alpha shareholders in not accepting Ramsay's Offer, including the possibility that the liquidity of the market for Alpha's shares may be adversely impacted by the level of Ramsay's ownership in Alpha at the close of the offer.
- * Ramsay's offer is unconditional.
We encourage shareholders to accept as soon as possible in accordance with the procedures set out in Ramsay's Bidder's Statement.
Amended Change in substantial holding from
RHC
ASX Document date: Fri 08 Jun 2001
Ramsay Centauri Pty Limited increased its relevant interest in Alpha Healthcare Limited on 07/06/2001, from 30,222,118 ordinary shares (67%) to 32,002,836 ordinary shares (70.9%).
Extension of Offer Period
ASX Document date: Fri 08 Jun 2001
1. Extension of Offer PeriodBy this notice Ramsay Centauri Limited ACN 090 070 156 ("Ramsay Centauri") VARIES its offers dated 26 April 2001 for all of the fully paid ordinary shares in Alpha (the "Offers") by:
(a) further extending the period during which the Offers remain open for acceptance until 7pm Sydney time on 22 June 2001;
Letter to Shareholders re Extension of
Offer
ASX Document date: Fri 08 Jun 2001
Further to my letter to you dated 4 June 2001, I am writing to inform you that Ramsay has decided to extend its offer for your Alpha Healthcare Limited shares in order to allow you extra time to accept. - - - - Ramsay has decided to extend its offer for another two weeks so that all shareholders have the opportunity to participate.
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The offer will now close on Friday 22 June 2001 at 7pm Sydney time.
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As of 7 June, 2001, Ramsay is entitled to 69.4% of Alpha's shares, and has now declared its offer final.
Alpha bows down to inevitable - - Ian
McIlwraith
The Age 09 Jun 2001
VALE Alpha Healthcare. Ramsay Healthcare last night extended its bid for Alpha, but it already owns 70 per cent and has control of the board. It was, in fact, a bid which was over before it ever really began. Through adroit corporate manoeuvring, Ramsay had a very tight grip on sensitive portions - - -ABSTRACT: (Australasian Business Intelligence)
Ramsay Health Care's offer to acquire a further stake in Alpha Healthcare has been extended to 22 June 2001. - - - -. Ramsay has offered Alpha $A0.40 a share, less than half of Alpha's net asset backing in December 2000.
Ramsay bids for Alpha
Australasian Business Intelligence June 11, 2001
SOURCE: Hospital & Healthcare
Change in substantial holding from RHC - -
- ALPHA HEALTHCARE LIMITED
ASX Document date: Tue 12 Jun 2001
Ramsay Centauri Pty Limited increased its relevant interest in Alpha Healthcare Limited on 08/06/2001, from 32,002,836 ordinary shares (70.9%) to 36,910,130 ordinary shares (81.8%).
Ramsay's prognosis is good health
Sydney Morning Herald 12 Jun 2001
Australia's private hospital industry will generate higher profits because high levels of private health cover will create a shortage of 2 million beds, according to the second largest operator, Ramsay Health Care. Ramsay managing director Mr Pat Grier told a Merrill Lynch health care conference - - -
Healthier gains from more beds: Ramsay
Australasian Business Intelligence June 12, 2001
SOURCE: The Age
ABSTRACT: High levels of health insurance cover in Australia will lead to a shortage of private hospital beds. MD of Ramsay Health Care, Pat Grier, said in early June 2001 that an extra two million beds would be needed to service the market. - - - - Grier believes the rationalisation of private hospital groups will give the industry more power to demand higher reimbursements from health funds
Ramsay's prognosis is good health
Australasian Business Intelligence June 12, 2001
SOURCE: Sydney Morning Herald
ABSTRACT: Australian private hospital operator, Ramsay Health Care, expects to generate a profit of $A15 million-plus in 2000-2001. Its managing director, Pat Grier, told a Merrill Lynch health care conference that Ramsay expects to generate a profit of $A21 million in 2001-2002. The company made an $A8.4 million profit in 1999-2000. Ramsay shares closed at $A2.70 on 8 June 2001, having risen from a low of $A0.76 in April 2000.- - - - Ramsay is finalising its takeover of Westmead Hospital owner, Alpha Healthcare. The acquisition is expected to give the company greater clout when negotiating higher payments from health care funds
HIH losses await exposure
Australasian Business Intelligence June 18, 2001
SOURCE: The Australian
ABSTRACT: The repercussions of HIH Insurance's collapse are set to continue as Australian companies reveal their exposure to the insurer.- - - - Alpha Healthcare, BHP, National Australia Bank and Harvey Norman have indicated that they have had some exposure to HIH
Change in substantial holding from RHC
Australasian Business Intelligence June 19, 2001
SOURCE: Australian Stock Exchange Announcements
ABSTRACT: - - - Ramsay Centauri increased its relevant interest in the company on 18 June 2001 from 82.9 per cent to 84 per cent, having increased the number of ordinary shares it holds in the company from 37,385,837 to 37,888,133
Ramsay wins long takeover battle for
Alpha
Australasian Business Intelligence July 5, 2001
SOURCE: The Mercury
ABSTRACT: Australia's Ramsay Health Care has succeeded in its hostile takeover bid for hospital management group Alpha Healthcare. Ramsay indicated on 4 July 2001 that is had received acceptances for 90.4% of Alpha, and would compulsorily acquire the remainder.
Bitter medicine
The Advertiser, 5 July 2001
Ramsay Health Care has won its battle to take over hospital management group Alpha Healthcare.Ramsay said yesterday it had received acceptances for 90.4 per cent of Alpha and would move to compulsorily acquire the rest.
Alpha had opposed to Ramsay's 40c a share offer, even unsuccessfully taking the predator to the takeovers panel before conceding defeat.
ALPHA HEALTHCARE WEB SITE ACCESSED 8/6/2001
About Alpha HealthcareAlpha was incorporated in August 1969 and listed on the Australian Stock Exchange that same year. In 1987 Alpha commenced activities in the private healthcare sector with the acquisition of St Edmund's Private Hospital in Sydney.
During 1988-90 the Group expanded with the acquisition of Mt Wilga Private Hospital, Lawrence Hargrave Hospital, Hunters Hill Private Hospital, The Perth Surgicentre and the construction and opening of Berkeley Vale Private Hospital.
Following their purchase, the various hospital facilities were substantially refurbished and repositioned within their respective marketplaces with a strong focus on rehabilitation care.
During 1995-1996, the Group undertook a diversification strategy into related areas of healthcare, thereby offering our patients and doctors an integrated range of healthcare services.
In 1997 Alpha acquired Health Care Corporation from James Hardie Industries which comprised three surgical hospitals totaling 235 beds in addition to the rights of a 140 bed private co-located surgical hospital at Westmead.
