HONG KONG/SYDNEY (Reuters) - Swedish private equity investor EQT Holdings, owner of Australia's I-MED Radiology Network, has abandoned its attempt to selling the country's biggest X-ray imaging provider after failing to get satisfactory offers.
EQT has informed bidders, including Shenzhen-listed Tonghua Golden-Horse Pharmaceutical Industry <000766.SZ>, that it has called off the sale process due to a disagreement over the valuation of I-MED, according to Golden-Horse's stock filing on Friday and a source with direct knowledge of the matter.
The source said several bidders including Tonghua Golden-Horse and Hong Kong-listed Golden Meditech Holdings <0801.HK>, had submitted separate bids of slightly more than A$1 billion ($750 million).
"The price tag EQT wanted was around A$1.3 billion ($976 million). It asked some bidders to sweeten the offer to that level, but no one seemed to have done so," said the source, who declined to be named.
I-MED confirmed in an emailed statement to Reuters that EQT had decided to keep the business and it was no longer for sale.
EQT declined to comment. Tonghua Golden-Horse and Golden Meditech didn't immediately respond to requests for comment.
EQT, which acquired I-MED in 2014, launched the sale in a process led by Morgan Stanley earlier this year, having cancelled a share market flotation in 2015, citing volatility in global markets at the time.
Reuters reported last month that the two Chinese healthcare firms were actively seeking to buy I-MED.
I-MED booked A$608 million in sales and A$100 million in earnings before interest, tax, depreciation and amortisation (EBITDA) in its 2016 financial year, according to EQT’s website.
(Reporting by Julie Zhu and Paulina Duran; Editing by Greg Mahlich)
