Healthscope Board unanimously recommends cash offer of $6.26 per share from The Carlyle Group and TPG Capital
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Healthscope Limited
ABN 85 006 405 152
Level 1
312 St Kilda Road
Melbourne Vic 3004
Tel: +61 3 9926 7500
Fax: +61 3 9926 7599
www.healthscope.com.au
19 July 2010
Healthscope Board unanimously recommends cash offer of $6.26 per share from The
Carlyle Group and TPG Capital
Healthscope announces today that it has entered into a Scheme Implementation Agreement
(“SIA”) with funds advised by The Carlyle Group and TPG Capital (the “Consortium”) under
which it is proposed the Consortium will acquire all of the ordinary shares in Healthscope
under a Scheme of Arrangement (“Scheme”).
Under the terms of the Scheme, Healthscope shareholders will receive $6.26 in cash per
share, valuing Healthscope at approximately $2.7 billion. The price will be reduced by any
future dividends that Healthscope pays to shareholders prior to completion.
The Board of Healthscope unanimously recommends that Healthscope shareholders vote in
favour of the Scheme at the Scheme meeting, in the absence of a superior proposal and
subject to an independent expert concluding that the Scheme is in the best interests of
Healthscope shareholders.
The price of $6.26 per share represents:
• A premium of 39% to the closing price of $4.50 on 13 May 2010, the day prior to the
announcement that Healthscope had received an indicative proposal;
• A premium of 43% to the three month volume weighted average price prior to 13 May
2010 of $4.36;
• A premium of 46% to the closing price on 13 May 2010 adjusted for movements in
the S&P/ASX 200 between 13 May 2010 and 16 July 2010 of $4.28; and
• A premium of 51% to the three month volume weighted average price prior to 13 May
2010 adjusted for movements in the S&P/ASX 200 between 13 May 2010 and 16 July
2010 of $4.15.
As previously announced on 31 May 2010, following receipt of a number of indicative and
non-binding proposals the Board determined that it was in the interests of shareholders that a
formal process be conducted to evaluate whether a change of control offer, at a price and on
terms that the Board would recommend, could be secured. A comprehensive process was
established including access to due diligence materials for a number of interested parties to
enable them to make binding proposals.
Following the receipt of proposals from parties after market close on 16 July 2010, the Board
has concluded that the Consortium’s proposal provides the best outcome for Healthscope
shareholders, both in terms of value and associated terms and conditions. The Board
unanimously recommends the Scheme in the absence of a superior proposal and subject to
an independent expert concluding that the Scheme is in the best interests of Healthscope
shareholders. Subject to those same qualifications, each Director of Healthscope intends tovote all the Healthscope shares held or controlled by them in favour of the Scheme at the Scheme meeting. The transaction is subject to certain conditions precedent including Healthscope shareholder and court approval of the Scheme and other regulatory approvals. A copy of the executed SIA entered into by Healthscope and the Consortium is attached to this announcement, which includes the conditions precedent for the Scheme and exclusivity provisions, including providing for the payment of a break fee to the Consortium and a reverse break fee to Healthscope in certain circumstances. Importantly for Healthscope, under the SIA the Consortium has provided substantial financing certainty and there is limited conditionality for a transaction of this nature. A Scheme booklet containing information relating to the proposed acquisition, reasons for the Directors’ unanimous recommendation, and details of the Scheme meeting is expected to be sent to Healthscope shareholders in September with a shareholder meeting to vote on the proposed Scheme to be held in early October. Subject to the approval of the Scheme by shareholders and the court and the timely satisfaction (or waiver) of conditions, Healthscope expects the transaction to be completed by October. Linda Nicholls, Healthscope Chairman, said: “Following the receipt of a number of approaches in May, the Board determined that it was in shareholders’ best interests that a formal process was undertaken to thoroughly evaluate whether a change of control offer, at a price and on terms that the Board would recommend, could be secured. This process has maximized shareholder value through encouraging competitive tension. “After careful consideration the Board has unanimously concluded that the Consortium’s offer provides shareholders with an excellent opportunity to realise considerable value from their investment in Healthscope. Whilst the Board is of the strong belief that the Company is well positioned to continue to deliver strong growth for shareholders into the future, the Board determined that the relative certainty delivered by this cash offer at a substantial premium was in the best interests of Healthscope shareholders.” The Consortium comprises two of the world’s leading private equity firms, collectively managing over US$135 billion in equity capital. In addition, the members of the Consortium have a longstanding track record of investing in and growing businesses within the healthcare sector both in Asia and globally. We have been informed that that Consortium intends to retain management and support management’s strategy, business plans and growth initiatives for all parts of the business. Healthscope is being advised by Goldman Sachs JBWere, Lazard and Minter Ellison. For further information please contact: Healthscope Investor Relations: Caroline Sladen (03) 9926 7848 0419 526 355 Media Communications: nightingale communications Kate Inverarity Lisa Keenan 0413 163 020 0409 150 771
Scheme
Implementation
Agreement
Healthscope Limited (Healthscope)
Asia Pacific Healthcare Group Pty Ltd (BidCo)
TPG Asia V, L.P. and TPG Partners VI, L.P (together, TPG)
Carlyle Asia Partners III, L.P. (Carlyle)
MinterEllison
L A W Y E R S
RIALTO TOWERS, 525 COLLINS STREET, MELBOURNE VIC 3000, DX 204 MELBOURNE
TEL: +61 3 8608 2000 FAX: +61 3 8608 1000
www.minterellison.com
ME_87075177_2 (W2003)Scheme Implementation Agreement Details 5 Agreed terms 6 1. Defined terms & interpretation 6 1.1 Defined terms 6 1.2 Interpretation 13 1.3 Headings 14 2. Agreement to propose Scheme 14 3. Conditions precedent and pre-implementation steps 14 3.1 Conditions to Scheme 14 3.2 Benefit and waiver of conditions precedent 15 3.3 Reasonable endeavours 16 3.4 Notifications 16 3.5 Certificate 16 3.6 Scheme voted down 17 3.7 Conditions not capable of being fulfilled 17 3.8 Interpretation 18 4. Scheme 18 4.1 Scheme 18 4.2 Scheme Consideration 19 4.3 Deed Poll 19 5. Consortium's guarantee 19 5.1 Guarantee and indemnity 19 5.2 Extent of guarantee and indemnity 19 5.3 No deductions or withholdings 19 5.4 Continuing guarantee 20 5.5 Avoidance 20 5.6 Principal and independent obligation 20 5.7 Enforcement against Consortium 20 6. Scheme – parties' respective implementation obligations 20 6.1 Healthscope's obligations 20 6.2 BidCo's obligations 22 6.3 Scheme Implementation 23 6.4 Explanatory Booklet - preparation principles 24 6.5 Healthscope Board recommendation 25 7. Conduct of business before the Implementation Date 25 7.1 Conduct of Healthscope business 25 7.2 Permitted activities 26 7.3 Access 27 7.4 Change of control rights 28 8. Reconstitution of the board of each member of the Healthscope Group 28 9. Representations and warranties 28 Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 2 ME_87075177_2 (W2003)
9.1 BidCo representations 28 9.2 BidCo's indemnity 31 9.3 Healthscope representations 31 9.4 Healthscope's indemnity 32 9.5 Notifications 32 9.6 Survival of representations 32 9.7 Survival of indemnities 32 9.8 Liability of directors and Authorised Persons 33 10. Confidentiality and Public Announcement 33 10.1 Confidentiality 33 10.2 Public Announcements on execution 33 10.3 Further public announcements 33 11. Termination 33 11.1 Termination by notice 33 11.2 Automatic termination 34 11.3 Effect of termination 34 12. Healthscope Break Fee 34 12.1 Background 34 12.2 Costs incurred by Bidco 35 12.3 Payment by Healthscope to BidCo 35 12.4 Compliance with law 36 13. BidCo Break Fee 36 13.1 Bidco Break Fee 36 13.2 Letters of credit 37 14. Exclusivity 37 14.1 No shop 37 14.2 No Talk and no due diligence 37 14.3 Exceptions 38 14.4 Healthscope warranty and undertakings 38 14.5 Notice of Competing Proposal 38 15. Private treaty arrangements 40 15.1 Options 40 15.2 Performance Rights 40 15.3 Rollover Performance Rights 40 16. Notices 40 17. General 41 17.1 Further acts 41 17.2 Timetable 41 17.3 Payments 41 17.4 Interest 42 17.5 Consents or approvals 42 17.6 GST 42 17.7 Stamp duty 42 17.8 Expenses 43 17.9 Amendments 43 17.10 Assignment 43 Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 3 ME_87075177_2 (W2003)
17.11 Business Day 43 17.12 Waiver 43 17.13 Release of officers and directors 43 17.14 Counterparts 44 17.15 Entire agreement 44 17.16 No representation or reliance 44 17.17 No merger 44 17.18 Governing law 44 Schedule 1 – Indicative Timetable 45 Schedule 2 – Deed Poll 46 Schedule 3 – Scheme 47 Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 4 ME_87075177_2 (W2003)
Details
Date
Parties
Name Healthscope Limited
ABN 85 006 405 152
Short form name Healthscope
Notice details Level 1, 312 St. Kilda Road, Melbourne VIC 3004
Facsimile: + 61 3 9926 7533
Attention: General Counsel
Name Asia Pacific Healthcare Group Pty Ltd
ACN 145 126 012
Short form name BidCo
Notice details c/- Freehills, Level 43, 101 Collins Street, Melbourne, Victoria, 3000
Facsimile: +61 3 9288 1567
Attention: Baden Furphy/Stefanie Allen
Name TPG Asia V, L.P.
Name TPG Partners VI, L.P.
Short form name (together, TPG)
Notice details 301 Commerce Street, Suite 3300
Fort Worth, TX 76102
United States of America
Facsimile: +1-817-871-4088
Attention: Legal Department
Name Carlyle Asia Partners III, L.P.
Short form name Carlyle
Notice details c/o The Carlyle Group, 1001 Pennsylvania Ave NW, Washington, DC 20004
USA
Facsimile: +1-202-347-1818
Attention: Thomas Mayrhofer
Background
A Healthscope and BidCo have agreed to implement the Proposed Transaction on and subject to the
terms and conditions of this agreement.
B Healthscope and BidCo have agreed certain other matters in connection with the Proposed
Transaction as set out in this agreement.
C Each Consortium Member has agreed to guarantee certain of the obligations of, and to provide
funding to, BidCo in connection with the Proposed Transaction.
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 5
ME_87075177_2 (W2003)Agreed terms
1. Defined terms & interpretation
1.1 Defined terms
In this agreement, unless the context otherwise requires, the following words and expressions
have meanings as follows:
Acceptable Confidentiality Agreement means a confidentiality agreement which contains
obligations on the recipient of confidential information which are no less onerous in any material
respect than the obligations of TPG Capital Asia, Inc., Carlyle Australia Investment Advisors
Limited and Blackstone Management Partners L.L.C. under the Confidentiality Agreement.
Adviser means any person who is engaged to provide professional advice of any type (including
legal, accounting, consulting or financial advice) to Healthscope, the Consortium, BidCo, any
Consortium Member or any Consortium Related Person.
ASIC means the Australian Securities and Investments Commission.
Associate has the meaning given in Division 2 of Part 1.2 of the Corporations Act as if section
12(1) of that Act included a reference to this agreement and Healthscope was the designated body.
ASX means ASX Limited (ABN 98 008 624 691) or, if the context requires, the financial market
operated by it.
Authorised Person means, in respect of a person, including the Consortium or a Consortium
Member:
(a) a director, officer, member or employee of the person;
(b) an Adviser of the person;
(c) a director, officer or employee of an Adviser of the person; and
(d) where the person is a Consortium Member, a Consortium Related Person of that
Consortium Member.
BidCo Facility Agreements means the debt facility agreements to be entered into pursuant to the
Debt Commitment Letters.
Bidco Warranties means the representations and warranties of Bidco set out in clause 9.1.
Business Day means a day that is not a Saturday, Sunday or a public holiday or bank holiday in
Melbourne, Australia.
Competing Proposal means any offer, proposal or expression of interest (including, by way of
takeover bid or scheme of arrangement) under which, if ultimately completed, a person or two or
more persons who are Associates would:
(a) acquire an interest in or become the holder of:
(i) more than 50% of the Shares; or
(ii) the whole or a material part of the business or property of Healthscope or the
Healthscope Group; or
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 6
ME_87075177_2 (W2003)(b) acquire control of Healthscope, within the meaning of section 50AA of the Corporations
Act; or
(c) otherwise acquire or merge with Healthscope.
Conditions means the conditions set out in clause 3.1 and Condition means any one of them.
Confidentiality Agreement means the confidentiality agreement between Healthscope, TPG
Capital Asia, Inc., Carlyle Australia Investment Advisors Limited and Blackstone Management
Partners L.L.C. dated 8 June 2010.
Consortium means TPG and Carlyle and Consortium Member means either of them.
Consortium Indemnified Parties means each Consortium Member, their respective Related
Bodies Corporate and Authorised Persons.
Consortium Information means such information regarding BidCo and the Consortium that is
provided by or on behalf of BidCo or the Consortium to Healthscope or the Independent Expert:
(a) to enable the Explanatory Booklet to be prepared and completed in compliance with all
applicable laws;
(b) to enable applications for Regulatory Approvals to be made; and
(c) otherwise in compliance with BidCo's obligations under clause 6.2(a).
Consortium Prescribed Occurrence means the occurrence of an Insolvency Event in relation to
BidCo or a Consortium Member.
Consortium Related Person means, in respect of a Consortium Member:
(a) a Related Body Corporate of that Consortium Member; and
(b) any director, officer, member or employee of that Consortium Member or of a Related
Body Corporate of that Consortium Member.
Corporations Act means the Corporations Act 2001 (Cth).
Court means the Supreme Court of Victoria or any other court of competent jurisdiction under
the Corporations Act as the parties may agree in writing.
Debt Commitment Letters means the credit-approved, executed commitment letters and
accompanying term sheets from certain banks or other financial institutions addressed to BidCo
and dated on or about the date of this agreement.
Deed Poll means the deed poll to be executed by BidCo prior to the date the Explanatory Booklet
is despatched to Healthscope Shareholders, in the form set out in Schedule 2 or in such other form
as is acceptable to Healthscope acting reasonably.
Disclosure Letter means the letter so entitled from Healthscope provided to BidCo prior to the
date of this agreement.
Due Diligence Material means the information disclosed by or on behalf of Healthscope and its
Subsidiaries (including management presentations and in response to requests for information) to
BidCo, the Consortium, a Consortium Member or any of their respective Authorised Persons prior
to the date of this agreement, as evidenced conclusively by schedule 2 to the Disclosure Letter.
EBITDA means earnings from ordinary, continuing activities of the Healthscope Group before
interest, tax, depreciation and amortisation calculated in accordance with the accounting policies
and practices applied by Healthscope as at the date of this agreement, excluding:
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 7
ME_87075177_2 (W2003)(a) all costs and expenses incurred by Healthscope associated with the Scheme process and
the Scheme, including all fees payable to external advisers of Healthscope; and
(b) the impact of any transaction entered by a member of the Healthscope Group or any other
event that is of a non-recurring nature.
Effective means, when used in relation to the Scheme, the coming into effect, under section
411(10) of the Corporations Act, of the order of the Court made under section 411(4)(b) of the
Corporations Act in relation to that Scheme.
Effective Date, with respect to the Scheme, means the date on which the Scheme becomes
Effective.
End Date means;
(a) 10 December 2010; or
(b) such other date and time agreed in writing between BidCo and Healthscope.
Equity Commitment Letters means the binding, executed commitment letters dated on or about
16 July 2010 addressed to BidCo and Healthscope from each Consortium Member, in each case
agreed to and accepted by Healthscope and BidCo.
Exclusivity Period means the period commencing on the date of this agreement and ending on
the earliest of:
(a) the End Date;
(b) the Effective Date of the Scheme; and
(c) the date this agreement is terminated in accordance with its terms.
Excluded Shareholder means any Healthscope Shareholder who is BidCo, a Consortium
Member or a Related Body Corporate of BidCo or a Related Body Corporate of a Consortium
Member.
Explanatory Booklet means the explanatory booklet to be prepared by Healthscope in respect of
the Proposed Transaction in accordance with the terms of this agreement and to be despatched to
Healthscope Shareholders.
FATA means the Foreign Acquisitions and Takeovers Act 1975 (Cth).
First Court Date means the date the Court first hears the application to order the convening of
the Scheme Meeting under section 411(1) of the Corporations Act.
Headcount Test means the requirement under section 411(4)(a)(ii)(A) of the Corporations Act
that the resolution to approve the Scheme at the Scheme Meeting is passed by a majority in
number of Healthscope Shareholders present and voting, either in person or by proxy.
Healthscope Board means the board of directors of Healthscope as constituted from time to time
(or any committee of the board of directors of Healthscope constituted from time to time to
consider the Proposed Transaction on behalf of Healthscope).
Healthscope Final Dividend means a cash dividend, not exceeding 12 cents per Share, to be
declared and paid by Healthscope (in its absolute discretion) between the date of this agreement
and the Implementation Date in respect of the year ended 30 June 2010 and which is not franked
in excess of the then available franking credits of Healthscope.
Healthscope Group means Healthscope and its Subsidiaries.
Healthscope Indemnified Parties means each member of the Healthscope Group and their
Related Bodies Corporate and Authorised Persons.
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 8
ME_87075177_2 (W2003)Healthscope Information means information to be included by Healthscope in the Explanatory
Booklet that explains the effect of the Scheme and sets out the information prescribed by the
Corporations Act and the Corporations Regulations 2001 (Cth), and any other information that is
material to the making of a decision by Healthscope Shareholders whether or not to vote in favour
of the Scheme, being information that is within the knowledge of Healthscope's directors and has
not previously been disclosed to Healthscope Shareholders, other than the Consortium
Information and the Independent Expert’s Report.
Healthscope Prescribed Occurrence means the occurrence of any of the following on or after
the date of this agreement:
(a) Healthscope converts all or any of its shares into a larger or smaller number of shares (see
section 254H of the Corporations Act);
(b) any member of the Healthscope Group resolves to reduce its share capital in any way;
(c) any member of the Healthscope Group:
(i) enters into a buy-back agreement; or
(ii) resolves to approve the terms of a buy-back agreement under subsections 257C(1)
or 257D(1) of the Corporations Act;
(d) any member of the Healthscope Group issues shares, or grants a performance right or an
option over its shares, or agrees to make such an issue or grant such a right or an option
other than pursuant to the exercise of an Option or Performance Right on issue
immediately before the date of this agreement;
(e) any member of the Healthscope Group issues, or agrees to issue, convertible notes;
(f) any member of the Healthscope Group disposes, or agrees to dispose, of the whole, or a
substantial part, of its business or property;
(g) any member of the Healthscope Group creates or agrees to create, any mortgage, charge,
lien or other encumbrance over the whole, or a substantial part, of its business or property,
other than in the usual and ordinary course of business consistent with past practice;
(h) any member of the Healthscope Group resolves to be wound up.
(i) a liquidator or provisional liquidator of any member of the Healthscope Group is
appointed;
(j) a court makes an order for the winding up of any member of the Healthscope Group;
(k) an administrator of any member of the Healthscope Group is appointed under
section 436A, 436B or 436C of the Corporations Act;
(l) any member of the Healthscope Group executes a deed of company arrangement;
(m) a receiver, or a receiver and manager, is appointed in relation to the whole, or a substantial
part, of the property of any member of the Healthscope Group; or
(n) Healthscope pays a dividend, other than:
(i) the Healthscope Final Dividend; or
(ii) a Permitted Additional Dividend,
provided that a Healthscope Prescribed Occurrence will not include any matter:
(iii) required to be done or procured by Healthscope pursuant to, or which is otherwise
contemplated by, this agreement or the Scheme;
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 9
ME_87075177_2 (W2003)(iv) Fairly Disclosed in filings of Healthscope with the ASX prior to the date of this
agreement;
(v) to the extent it is Fairly Disclosed in the Due Diligence Material or the Disclosure Letter;
or
(vi) the undertaking of which Bidco has approved in writing.
Healthscope Shareholder means each person who is registered in the register maintained by
Healthscope under section 168(1) of the Corporations Act as a holder of Shares.
Healthscope Warranties means the representations and warranties of Healthscope set out in
clause 9.3.
Implementation Date means, with respect to the Scheme, the fifth Business Day, or such other
Business Day as the parties agree, following the Record Date for the Scheme.
Independent Expert means an expert, independent of the parties, engaged by Healthscope in
good faith to opine on whether the Scheme is in the best interest of Healthscope Shareholders.
Independent Expert's Report means the report prepared by the Independent Expert and stating
whether the Scheme is in the best interest of Healthscope Shareholders.
Insolvency Event means in relation to a person:
(a) insolvency official: the appointment of a liquidator, provisional liquidator, administrator,
statutory manager, controller, receiver, receiver and manager or other insolvency official
(whether under an Australian law or a foreign law) to the person or to the whole or a
substantial part of the property or assets of the person and the action is not stayed,
withdrawn or dismissed within 14 days;
(b) arrangements: the entry by the person into a compromise or arrangement with its
creditors generally;
(c) winding up: the calling of a meeting to consider a resolution to wind up the person (other
than where the resolution is frivolous or cannot reasonably be considered to be likely to
lead to the actual winding up of the person) or the making of an application or order for
the winding up or deregistration of the person other than where the application or order (as
the case may be) is set aside or withdrawn within 14 days;
(d) suspends payments: the person suspends or threatens to suspend payment of its debts as
and when they become due;
(e) ceasing business: the person ceases or threatens to cease to carry on business;
(f) insolvency: the person is or becomes unable to pay its debts when they fall due within the
meaning of the Corporations Act or is otherwise presumed to be insolvent under the
Corporations Act;
(g) deregistration: the person being deregistered as a company or otherwise dissolved;
(h) deed of company arrangement: the person executing a deed of company arrangement;
(i) person as trustee or partner: the person incurs a liability while acting or purporting to
act as trustee (or co-trustee) or general partner of a trust or partnership (including a limited
partnership) and the person is not entitled to be fully indemnified against the liability out
of trust or partnership assets because of one or more of the following:
(i) a breach of trust or obligation as partner by the person;
(ii) the person acting outside the scope of its powers as trustee or partner;
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 10
ME_87075177_2 (W2003)(iii) a term of the trust or partnership denying, or limiting, the person's right to be
indemnified against the liability;
(iv) the assets of the trust or partnership being insufficient to discharge the liability; or
(j) analogous events: anything analogous to those set out in any of paragraphs (a) to (g)
inclusive occurs in relation to the person under the laws of a foreign jurisdiction.
Interest Rate means the 30 day Bank Bill Swap Reference Rate as published as at the relevant
due date for payment in the "Money & Bond Markets" section of The Australian Financial
Review
Listing Rules means the official listing rules of ASX as amended from time to time.
Material Adverse Change means a matter, event or circumstance that occurs, is announced or
becomes known to Bidco or the Healthscope Board (whether or not it becomes public) where that
matter, event or circumstance:
(a) has, has had or could reasonably be expected to have individually or when aggregated
with all such matters, events or circumstances the effect of diminishing the net assets
(excluding borrowings) of the Healthscope Group by an amount of $270 million or more;
or
(b) will have or could reasonably be expected to have individually or when aggregated with
all such matters, events or circumstances the result that the 2010 or 2011 financial year
EBITDA of the Healthscope Group will be reduced by $40 million or more (after
deducting from the amount of the reduction any increase in EBITDA derived from an
unrelated matter, event or circumstance),
other than:
(c) a matter, event or circumstance required to be done or procured by Healthscope pursuant
to this agreement or the Scheme;
(d) a matter, event or circumstance to the extent that it was Fairly Disclosed in the Due
Diligence Material or the Disclosure Letter;
(e) a matter, event or circumstance to the extent that it was Fairly Disclosed in documents that
were publicly available prior to the date which is two Business Days prior to the date of
this agreement from public filings of Healthscope with ASX or ASIC or public registers
relating to leasehold property and statutory or title searches relating to freehold property;
(f) a matter, event or circumstance comprising a change in any applicable law;
(g) a matter, event or circumstance relating to any material adverse change or disruption to
the existing financial markets, political or economic conditions of Australia, Japan, the
United Kingdom, the United States of America, Singapore, Hong Kong, China or the
international financial markets or any change in national or international political,
financial or economic conditions; or
(h) payment by Healthscope of the Healthscope Final Dividend or a Permitted Additional
Dividend.
Option means an option granted by Healthscope to acquire by way of issue one or more Shares.
Option Cancellation Deed means the optionholder cancellation deed the form of which has been
provided to Bidco prior to the date of this agreement pursuant to which the Optionholder agrees,
subject to the Scheme becoming Effective, to the cancellation of all of his Options in return for
the payment by Healthscope of the applicable consideration set out in the deed.
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 11
ME_87075177_2 (W2003)Optionholder means the person who is recorded in the register maintained by Healthscope under
section 168(1) of the Corporations Act as the holder of Options.
Performance Right means a right granted under Healthscope's executive performance rights plan
to acquire by way of issue a Share subject to the terms of such plan.
Performance Rights Holder means a person who holds a Performance Right.
Permitted Additional Dividend means a fully franked special dividend which is declared and
paid by Healthscope (in its absolute discretion) between the date of this agreement and the
Implementation Date (in addition to the Healthscope Final Dividend), which does not exceed an
amount which would cause Healthscope’s franking account to not have a positive balance on the
Implementation Date (taking into account any tax refunds Healthscope expects to receive and any
dividend payments made before the Implementation Date).
Proposed Transaction means the proposed acquisition by BidCo, in accordance with the terms
and conditions of this agreement, of all of the Shares (other than the Shares held by an Excluded
Shareholder) through the implementation of the Scheme.
Record Date means, in respect of the Scheme, 7.00pm on the fifth Business Day (or such other
Business Day as the parties agree in writing) following the Effective Date.
Regulatory Approvals means the approvals set out in clause 3.1(a).
Related Body Corporate of a person, means:
(a) a related body corporate of that person under section 50 of the Corporations Act and
includes any body corporate that would be a related body corporate if section 48(2) of the
Corporations Act was omitted; and
(b) in respect of a Consortium Member, includes any fund, limited partnership or other
collective investment vehicle which is managed or controlled by that Consortium Member
(or its general partner) or a related body corporate (as referred to paragraph (a) above) of
that Consortium Member,
and of the Consortium means a related body corporate under paragraph (a) or any entity, fund,
limited partnership or other collective investment vehicle in respect of any Consortium Member.
RG 60 means Regulatory Guide 60 issued by ASIC on 11 December 2009.
Rollover Performance Rights means Performance Rights that are eligible to be rolled over
pursuant to section 83A-130 of the Income Tax Assessment Act 1997 (Cth) and which have been
agreed by BidCo and the relevant Performance Rights Holder as being "Rollover Performance
Rights" pursuant to clause 15.3.
Scheme means the proposed scheme of arrangement pursuant to Part 5.1 of the Corporations Act
between Healthscope and Scheme Shareholders in respect of all Scheme Shares, substantially in
the form set out in Schedule 3 or in such other form as the parties agree in writing, subject to any
alterations or conditions made or required by the Court under section 411(6) of the Corporations
Act and approved in writing by each party.
Scheme Consideration means, in respect of each Scheme Share held by a Scheme Shareholder,
$6.26 cash (as reduced by the amount of any Healthscope Final Dividend and any Permitted
Additional Dividend).
Scheme Meeting means the meeting of Healthscope Shareholders ordered by the Court to be
convened under section 411(1) of the Corporations Act to consider and vote on the Scheme and
includes any meeting convened following any adjournment or postponement of that meeting.
Scheme Shareholder means a person who holds one or more Scheme Shares.
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 12
ME_87075177_2 (W2003)Scheme Share means a Share on issue as at the Record Date other than any Share then held by an
Excluded Shareholder (but including any such Share held on behalf of one or more third parties or
otherwise in a fiduciary capacity).
Second Court Date means the first day on which an application made to the Court for an order
under section 411(4)(b) of the Corporations Act approving the Scheme is heard or scheduled to be
heard or, if the application is adjourned for any reason, means the date on which the adjourned
application is heard or scheduled to be heard.
Senior Manager means an employee of any member of the Healthscope Group reporting directly
to the managing director, chief financial officer or group chief operating officer of Healthscope.
Share means an issued fully paid ordinary share in the capital of Healthscope.
Share Splitting means the splitting by a holder of Shares into two or more parcels of Shares
whether or not it results in any change in beneficial ownership of the Shares.
Subsidiary has the meaning given to that term in section 46 of the Corporations Act.
Superior Proposal means a bona fide Competing Proposal which in the determination of the
Healthscope Board acting in good faith and in order to satisfy what the Healthscope Board
reasonably considers to be its fiduciary or statutory duties would, if completed substantially in
accordance with its terms, be likely to result in a transaction more favourable to Healthscope
Shareholders as a whole than the Proposed Transaction having regard to matters including
consideration, conditionality, funding, certainty and timing.
Timetable means the indicative timetable in relation to the Proposed Transaction set out in
Schedule 1 with such modifications as may be agreed in writing by the parties.
Treasurer means the Treasurer of the Commonwealth of Australia.
1.2 Interpretation
In this agreement, except where the context otherwise requires:
(a) the singular includes the plural and vice versa, and a gender includes other genders;
(b) another grammatical form of a defined word or expression has a corresponding meaning;
(c) a reference to a clause, paragraph, schedule or annexure is to a clause or paragraph of, or
schedule or annexure to, this agreement, and a reference to this agreement includes any
schedule or annexure;
(d) a reference to a document or instrument includes the document or instrument as novated,
altered, supplemented or replaced from time to time;
(e) a reference to A$, $A, dollar or $ is to Australian currency;
(f) a reference to time is to Melbourne, Australia time;
(g) a reference to a party is to a party to this agreement, and a reference to a party to a
document includes the party's executors, administrators, successors and permitted assigns
and substitutes;
(h) a reference to a person includes a natural person, partnership, body corporate, association,
governmental or local authority or agency or other entity;
(i) a reference to a statute, ordinance, code or other law includes regulations and other
instruments under it and consolidations, amendments, re-enactments or replacements of
any of them;
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 13
ME_87075177_2 (W2003)(j) a word or expression defined in the Corporations Act has the meaning given to it in the
Corporations Act;
(k) the meaning of general words is not limited by specific examples introduced by including,
for example or similar expressions;
(l) a rule of construction does not apply to the disadvantage of a party because the party was
responsible for the preparation of this agreement or any part of it;
(m) if a day on or by which an obligation must be performed or an event must occur is not a
Business Day, the obligation must be performed or the event must occur on or by the next
Business Day; and
(n) a reference to Fairly Disclosed means disclosed to any of BidCo the Consortium, a
Consortium Member or any of their respective Authorised Persons in sufficient detail so
as to enable a reasonable and sophisticated buyer (or one of its Authorised Persons)
experienced in transactions similar to the Proposed Transaction and experienced in a
business similar to any business conducted by the Healthscope Group, to identify the
nature and scope of the relevant matter, event or circumstance.
1.3 Headings
Headings are for ease of reference only and do not affect interpretation.
2. Agreement to propose Scheme
(a) Healthscope agrees to propose and implement the Scheme on and subject to the terms and
conditions of this agreement, and substantially in accordance with the Timetable.
(b) BidCo agrees to assist Healthscope in proposing and implementing the Scheme on and
subject to the terms and conditions of this agreement, and substantially in accordance with
the Timetable.
3. Conditions precedent and pre-implementation steps
3.1 Conditions to Scheme
Subject to this clause 3, the Scheme will not become Effective, and the respective obligations of
the parties in relation to the implementation of the Scheme will not be binding, until each of the
following conditions precedent is satisfied or waived to the extent and in the manner set out in this
clause 3:
(a) (Regulatory Approvals):
(i) (ASIC and ASX) before 8.00am on the Second Court Date, ASIC and ASX issue
or provide such consents or approvals as are necessary or which Healthscope and
Bidco agree are necessary or desirable to implement the Scheme and such
consent, approval or other act has not been withdrawn or revoked before 8.00am
on the Second Court Date;
(ii) (FIRB) before 8.00am on the Second Court Date, either:
(A) the Treasurer (or his delegate) has provided a notice in writing
(without any term or condition which Bidco reasonably considers
unacceptable) stating or to the effect that, in terms of Australia’s
foreign investment policy, the Australian Government does not object
to BidCo acquiring the Scheme Shares pursuant to the Scheme; or
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 14
ME_87075177_2 (W2003)(B) the period provided for under the FATA during which the Treasurer
may make orders under section 18 or 22 of the FATA prohibiting the
acquisition of the Scheme Shares by BidCo has elapsed without any
such order being made; or
(C) if an interim order under section 22 of the FATA prohibiting such
acquisition is made, the subsequent period for making a final order
prohibiting the acquisition of the Scheme Shares by BidCo having
elapsed without any such order being made; and
(iii) (New Zealand Overseas Investment Office) before 8.00am on the Second Court
Date, receipt by BidCo in writing of all consents required under the Overseas
Investment Act 2005 (New Zealand) for the implementation of the Scheme either
unconditionally or on terms acceptable to BidCo acting reasonably;
(b) (No Material Adverse Change) no Material Adverse Change occurs between the date of
this agreement and 8.00am on the Second Court Date;
(c) (No Healthscope Prescribed Occurrence) no Healthscope Prescribed Occurrence occurs
between the date of this agreement and 8.00am on the Second Court Date;
(d) (No Consortium Prescribed Occurrence) no Consortium Prescribed Occurrence occurs
between the date of this agreement and 8.00am on the Second Court Date;
(e) (No change of Healthscope Board recommendation) between the date of this agreement
and the date of the Scheme Meeting, none of the Directors of Healthscope changing,
qualifying or withdrawing their unanimous recommendation to Healthscope Shareholders
to vote in favour of the Scheme, which recommendation may be expressed to be given:
(i) in the absence of a Superior Proposal; and
(ii) subject to the Independent Expert opining that the Scheme is in the best interest
of Healthscope Shareholders;
(f) (Healthscope Warranties) the Healthscope Warranties being true and correct in all
material respects on the date of this agreement and at 8.00am on the Second Court Date;
(g) (Bidco Warranties) the BidCo Warranties being true and correct in all material respects
on the date of this agreement and at 8.00am on the Second Court Date;
(h) (Shareholder approval) the Scheme is approved by Healthscope Shareholders at the
Scheme Meeting by the majorities required under section 411(4)(a)(ii) of the Corporations
Act;
(i) (Court approval) the Scheme is approved by the Court in accordance with section
411(4)(b) of the Corporations Act either unconditionally or on conditions that do not
impose unduly onerous obligations upon either party (acting reasonably); and
(j) (Independent Expert) the Independent Expert concluding in the Independent Expert's
Report that in its opinion the Scheme is in the best interest of Healthscope Shareholders
and the Independent Expert not having publicly withdrawn or qualified this conclusion on
or before the Second Court Date.
3.2 Benefit and waiver of conditions precedent
(a) The Condition in clause 3.1(a) is for the benefit of each party and any breach or non-
fulfilment of it may only be waived (if capable of waiver) with the written consent of both
parties, which consent either party may give or withhold in its absolute discretion.
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 15
ME_87075177_2 (W2003)(b) The Conditions in clauses 3.1(b), 3.1(c), 3.1(e) and 3.1(f) are for the sole benefit of BidCo
and any breach or non-fulfilment of them may only be waived by BidCo giving its written
consent.
(c) The Conditions in clauses 3.1(d), 3.1(g) and 3.1(j) are for the sole benefit of Healthscope
and any breach or non-fulfilment of them may only be waived by Healthscope giving its
written consent.
(d) A party entitled to waive a Condition pursuant to this clause 3.2 may do so in its absolute
discretion. Any waiver of a Condition by a party for whose benefit the condition applies
must take place on or prior to 8.00am on the Second Court Date. The Conditions in
clauses 3.1(h) and 3.1(i) cannot be waived.
(e) If a party waives the breach or non-fulfilment of any of the Conditions in clause 3.1, that
waiver will not preclude it from suing the other party for any breach of this agreement
including without limitation a breach that resulted in the non-fulfilment of the Condition
that was waived.
3.3 Reasonable endeavours
(a) Healthscope and BidCo will use their respective reasonable endeavours to procure that
each of the Conditions is satisfied as soon as reasonably practicable after the date of this
agreement or continues to be satisfied at all times until the last time they are to be satisfied
(as the case may require).
(b) Without limiting clauses 3.4 and 3.5 below, each of Healthscope and BidCo must:
(i) promptly apply for all relevant Regulatory Approvals and provide the other party
with a copy of all applications for Regulatory Approvals;
(ii) take all the steps for which it is responsible as part of the Regulatory Approvals
process;
(iii) respond to all requests for information in respect of the applications for
Regulatory Approvals at the earliest practicable time;
(iv) provide the other with all information and assistance reasonably requested in
connection with the applications for Regulatory Approvals; and
(v) so far as it is able, allow the other and its Authorised Persons the opportunity to
be present and make submissions at any meetings with any regulatory body
relating to the Regulatory Approvals in respect of the Scheme.
3.4 Notifications
Each of BidCo and Healthscope must:
(a) keep the other promptly and reasonably informed of the steps it has taken and of its
progress towards satisfaction of the Conditions;
(b) promptly notify the other in writing if it becomes aware that any Condition has been
satisfied; and
(c) promptly notify the other in writing if it becomes aware that any Condition is or has
become incapable of being satisfied (having regard to the respective obligations of each
party under clause 3.3).
3.5 Certificate
On the Second Court Date:
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 16
ME_87075177_2 (W2003)(a) BidCo and Healthscope will provide a joint certificate to the Court confirming whether or
not the Condition set out in clauses 3.1(a) and 3.1(h) have been satisfied or waived in
accordance with the terms of this agreement;
(b) Healthscope will provide a certificate to the Court confirming whether or not the
Conditions set out in clauses 3.1(b), 3.1(c), 3.1(e), 3.1(f) and 3.1(j) have been satisfied or
waived in accordance with the terms of this agreement;
(c) BidCo will provide a certificate to the Court confirming whether or not the Conditions set
out in clauses 3.1(d) and 3.1(g) have been satisfied or waived in accordance with the terms
of this agreement;
(d) Healthscope will provide a certificate to Bidco confirming whether or not it has breached
any of its obligations under this agreement (including a breach of a representation or
warranty), and if its has, giving details of such breach(es); and
(e) Bidco will provide a certificate to Healthscope confirming whether or not it has breached
any of its obligations under this agreement (including a breach of a representation or
warranty), and if its has, giving details of such breach(es).
3.6 Scheme voted down
If the Scheme is not approved by Healthscope Shareholders at the Scheme Meeting by reason
only of the non-satisfaction of the Headcount Test and Healthscope or Bidco considers acting
reasonably that Share Splitting or some abusive or improper conduct may have caused or
contributed to the Headcount Test not having been satisfied then Healthscope must:
(a) apply for an order of the Court contemplated by section 411(4)(a)(ii)(A) of the
Corporations Act to disregard the Headcount Test and seek Court approval of the Scheme
under section 411(4)(b) of the Corporations Act, notwithstanding that the Headcount Test
has not been satisfied; and
(b) make such submissions to the Court and file such evidence as Counsel engaged by
Healthscope to represent it in Court proceedings related to the Scheme, in consultation
with Bidco, considers is reasonably required to seek to persuade the Court to exercise its
discretion under section 411(4)(a)(ii)(A) of the Act by making an order to disregard the
Headcount Test.
3.7 Conditions not capable of being fulfilled
(a) If:
(i) any Condition is not satisfied or (where capable of waiver) waived by the date
specified in this agreement for its satisfaction (or an event occurs which would or
is likely to prevent a condition precedent being satisfied by the date specified in
this agreement);
(ii) a circumstance occurs with the result that a Condition is not capable of being
fulfilled and, if the Condition is able to be waived by a party under clause 3.2 the
party does not waive the Condition within five Business Days after the
occurrence of the circumstance; or
(iii) the Scheme does not become Effective by the End Date,
and neither of the following has occurred:
(i) the Independent Expert opines to the effect that the Scheme is not in the best
interest of Healthscope Shareholders; or
(ii) a Superior Proposal has been publicly announced,
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 17
ME_87075177_2 (W2003)then Healthscope and BidCo must consult in good faith with a view to determining
whether:
(i) the Scheme may proceed by way of alternative means or methods;
(ii) to extend the relevant time or date for satisfaction of the Condition;
(iii) to change the date of the application to be made to the Court for orders under
section 411(4)(b) of the Corporations Act approving the Scheme or adjourning
that application (as applicable) to another date agreed by the parties; or
(iv) to extend the End Date.
(b) Subject to clause 3.7(c), if a Condition becomes incapable of being satisfied before the
End Date and Healthscope and Bidco are unable to reach agreement under clause 3.7(a)
within five Business Days of the date on which they both become aware that the
Condition has become incapable of being satisfied (or, if earlier, by 8.00am on the Second
Court Date), then unless the relevant Condition (where capable of waiver) is waived:
(i) in relation to the Conditions in clause 3.1(a) or 3.1(h)either BidCo or Healthscope
may terminate this agreement by giving the other notice without any liability to
any party by reason of that termination alone;
(ii) in relation to the Conditions in clause 3.1(b), 3.1(c), 3.1(e) and 3.1(f), BidCo may
terminate this agreement by giving Healthscope notice without any liability to any
party by reason of that termination alone; and
(iii) in relation to the Conditions in clauses 3.1(d), 3.1(g) and 3.1(j), Healthscope may
terminate this agreement by giving BidCo notice without any liability to any other
party by reason of that termination alone.
(c) A party will not be entitled to terminate this agreement pursuant to clause 3.7(b) if the
relevant Condition has not been satisfied as a result of:
(i) a breach of this agreement by that party; or
(ii) a deliberate act or omission of that party which either alone or together with other
circumstances prevents that Condition being satisfied.
3.8 Interpretation
For the purposes of this clause 3, a Condition will be incapable of satisfaction, or incapable of
being fulfilled if:
(a) in the case of a Condition relating a Regulatory Approval – the relevant regulatory
authority makes or has made a final adverse determination in writing to the effect that it
will not provide the Regulatory Approval; and
(b) in all other cases – there is an act, failure to act or occurrence that will prevent the
Condition being satisfied by the End Date (and the breach or non-fulfilment that would
otherwise have occurred has not already been waived in accordance with this agreement).
4. Scheme
4.1 Scheme
Healthscope must, as soon as reasonably practicable after the date of this agreement and
substantially in compliance with the Timetable, propose the Scheme under which, subject to the
Scheme becoming Effective, all of the Scheme Shares will be transferred to BidCo and the
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 18
ME_87075177_2 (W2003)Scheme Shareholders will be entitled to receive, for each Scheme Share held at the Record Date,
the Scheme Consideration.
4.2 Scheme Consideration
BidCo covenants in favour of Healthscope, in consideration for and simultaneously with the
transfer to BidCo of the Scheme Shares held by each Scheme Shareholder under the terms of the
Scheme, to provide to each Scheme Shareholder the Scheme Consideration on the Implementation
Date and otherwise in accordance with the Scheme.
4.3 Deed Poll
BidCo covenants in favour of Healthscope (in its own right and separately as trustee for each of
the Scheme Shareholders) to execute, deliver and perform the Deed Poll prior to the despatch of
the Explanatory Booklet.
5. Consortium's guarantee
5.1 Guarantee and indemnity
In consideration of Healthscope executing this agreement at the request of the Consortium
Members, the Consortium Members unconditionally, irrevocably and joint and severally:
(a) guarantee to Healthscope the due and punctual performance and observance by BidCo of
all of the obligations contained in or implied under clause 13 of this agreement that must
be performed and observed by BidCo (Guaranteed Obligations); and
(b) indemnify Healthscope against all losses, damages, costs and expenses which Healthscope
may now or in the future suffer or incur consequent on or arising directly or indirectly out
of any breach or non-observance by BidCo of a Guaranteed Obligation.
5.2 Extent of guarantee and indemnity
This clause 5 applies and the obligations of each Consortium Member remain unaffected despite:
(a) an amendment of this agreement; or
(b) a rule of law or equity to the contrary; or
(c) an insolvency event affecting a person or the death of a person; or
(d) a change in the constitution, membership, or partnership of a person; or
(e) the partial performance of the Guaranteed Obligations; or
(f) the Guaranteed Obligations not being enforceable at any time (whether by reason of a
legal limitation, disability or incapacity on the part of BidCo and whether this agreement
is void ab initio or is subsequently avoided) against BidCo; or
(g) Healthscope granting any time or other indulgence or concession to, compounding or
compromising with, or wholly or partially releasing BidCo or the Consortium of an
obligation; or
(h) another thing happening that might otherwise release, discharge or affect the obligations
of each Consortium Member under this agreement.
5.3 No deductions or withholdings
Each Consortium Member must make all payments required of it under this clause 5 in full,
without set off and free and clear of any withholding or deduction. If a Consortium Member is
required to withhold or deduct any tax, duty, impost, charge, withholding, rate, levies or other
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 19
ME_87075177_2 (W2003)governmental imposition of any nature together with associated costs, charges, interest, penalties,
fines or expenses (Taxes) so that Healthscope would not actually receive on the due date the full
amount then the Consortium Member must ensure that the amount payable is increased so that,
after making that deduction and deductions applicable to additional amounts payable under this
paragraph, Healthscope is entitled to receive, and does receive, the amount it would have received
if no deductions had been required. The Consortium Member must ensure any deductions
required are made and pay the full amount deducted to the relevant governmental body in
accordance with applicable law.
5.4 Continuing guarantee
Each Consortium Member's obligations under this clause 5 are absolute, unconditional and
irrevocable. The liability of each Consortium Member under this clause 5 extends to and is not
affected by any circumstance, act or omission which, but for this paragraph, might otherwise
affect it at law or in equity. The guarantee in this clause 5 is a continuing security, and remains in
full force until all of the Guaranteed Obligations have been fully paid and satisfied. This clause 5
survives any termination or full or partial discharge of this agreement.
5.5 Avoidance
Each Consortium Member agrees that if a payment or other transaction relating to the Guaranteed
Obligations is void, voidable, unenforceable or defective for any reason or a related claim is
upheld, conceded or settled (each an Avoidance), then even though Healthscope knew or should
have known of the Avoidance:
(a) each right, power, discretion or remedy of Healthscope and each Consortium Member's
liability under this clause 5 will be what it would have been, and will continue, as if the
payment or transaction the subject of the Avoidance had not occurred; and
(b) each Consortium Member will immediately execute and do anything necessary or required
by Healthscope to restore Healthscope to its position immediately before the Avoidance.
5.6 Principal and independent obligation
This clause 5 is:
(a) a principal obligation and is not to be treated as ancillary or collateral to another right or
obligation; and
(b) independent of and not in substitution for or affected by another security interest or
guarantee or other document or agreement which Healthscope or another person may hold
concerning the Guaranteed Obligations.
5.7 Enforcement against Consortium
Healthscope may enforce this clause 5 against a Consortium Member without first having to
resort to another guarantee or security interest or other agreement relating to the Guaranteed
Obligations.
6. Scheme – parties' respective implementation obligations
6.1 Healthscope's obligations
Healthscope must take all steps reasonably necessary to implement the Scheme as soon as
reasonably practicable after the date of this agreement and substantially in accordance with the
Timetable, including without limitation taking each of the following steps:
(a) (Explanatory Booklet) prepare the Explanatory Booklet in accordance with clause 6.4;
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 20
ME_87075177_2 (W2003)(b) (Independent Expert) promptly appoint the Independent Expert and provide all
assistance and information reasonably requested by the Independent Expert in connection
with the preparation of the Independent Expert's Report for inclusion in the Explanatory
Booklet;
(c) (approval of draft for ASIC) as soon as reasonably practicable after the preparation of an
advanced draft of the Explanatory Booklet suitable for review by ASIC, procure that a
meeting of the Healthscope Board, or of a committee of the Healthscope Board appointed
for the purpose, is held to consider approving that draft as being in a form appropriate for
provision to ASIC for its review and approval for the purposes of section 411(2) of the
Corporations Act;
(d) (liaison with ASIC) as soon as reasonably practicable after the date of this agreement:
(i) provide an advanced draft of the Explanatory Booklet, in a form approved in
accordance with clauses 6.1(c) and 6.2(e), to ASIC for its review and approval for
the purposes of section 411(2) of the Corporations Act; and
(ii) liaise with ASIC during the period of its consideration of that draft of the
Explanatory Booklet and keep Bidco reasonably informed of any matters raised
by ASIC in relation to the Explanatory Booklet and use reasonable endeavours, in
consultation with Bidco, to resolve any such matters;
(e) (approval of Explanatory Booklet) as soon as reasonably practicable after the
conclusion of the review by ASIC of the Explanatory Booklet, procure that a meeting of
the Healthscope Board, or of a committee of the Healthscope Board appointed for the
purpose, is held to consider approving the Explanatory Booklet for despatch to the
Healthscope Shareholders, subject to orders of the Court under section 411(1) of the
Corporations Act;
(f) (section 411(17)(b) statements) apply to ASIC for the production of statements in writing
pursuant to section 411(17)(b) of the Corporations Act stating that ASIC has no objection
to the Scheme;
(g) (first Court hearing) lodge all documents with the Court and take all other reasonable
steps to ensure that promptly after, and provided that, the approvals in clauses 6.1(e) and
6.2(f) have been received, an application is heard by the Court for an order under section
411(1) of the Corporations Act directing Healthscope to convene the Scheme Meeting;
(h) (registration of explanatory statement) request ASIC to register the explanatory
statement included in the Explanatory Booklet in relation to the Scheme in accordance
with section 412(6) of the Corporations Act;
(i) (convening Scheme Meeting) take all reasonable steps necessary to comply with the
orders of the Court including, as required, despatching the Explanatory Booklet to the
Healthscope Shareholders and convening and holding the Scheme Meeting;
(j) (Court approval application if parties agree that conditions are capable of being
satisfied) if the resolution submitted to the Scheme Meeting is passed by the majorities
required under section 411(4)(a)(ii) of the Corporations Act (or, where clause 3.6 applies,
the majority required under section 411(4)(a)(ii)(B) of the Corporations Act) and, if
necessary, the parties agree on the Business Day immediately following the Scheme
Meeting that it can be reasonably expected that all of the Conditions will be satisfied or
waived prior to the proposed Second Court Date, apply (and, to the extent necessary, re-
apply) to the Court for orders approving the Scheme;
Minter Ellison | Ref: 30-6507161 Scheme Implementation Agreement | page 21
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