Company news: Primary Health Care
Primary Health Care has agreed to divest some Queensland pathology collection centres, at the behest of the competition regulator (the ACCC).
Primary has advised that the divestment represents approximately 3% of the company's pathology collection centres and that it will not materially impact profit. Primary didn't get ACCC approval before it purchased the centres from Healthscope in late 2014 (settled early 2015), and although it doesn't believe there is a impact on competition, the ACCC's opinion differs. Thus it has agreed to the divestment.
This week, Primary also advised it has sold its Transport Health insurance business for $27m. Proceeds will be used to strengthen the balance sheet, and we view this as the company ensuring it is focusing on its core business. Primary purchased the business in Sep-14 for $18m.