As Primary Health Care's board finalises which executive recruitment firm it will use to help search for a new chief following Peter Gregg's recent departure, it's understood major shareholder Jangho Group is re-cutting the numbers on the $2 billion company.
Shanghai-listed Jangho is sitting on a 15.93 per cent stake, and it's well known it is looking to build its presence in local healthcare assets, having purchased Vision Eye Institute last year for nearly $200 million.
Jangho – which is one of the world's largest curtain wall manufactures –is interested in local healthcare assets due to its high growth and diversification away from the building sector.
While some sources say Jangho is happy being a passive Primary shareholder, others note that it has been seeking out funding for months and waiting for the right moment to pounce.
International media suggested syndicated loans were being sought by Jangho in relation to its Primary stake.
With its stock down almost 4 per cent this year and the search for a new boss providing instability at Primary, a move sooner rather than later may make sense. Some have suggested that by taking Primary private Jangho could reinstall Mr Gregg.
Primary and Jangho have been in contact in recent weeks following the surprise departure Gregg. He stepped down after charges by the corporate watchdog linked to the alleged falsifying of documents when he worked for construction group Leighton Holdings.
While Jangho often doesn't use local advisers, it is known to be close to Minter Ellison and Macquarie Capital at the time of purchasing its Primary stake.
Primary has traditionally had UBS in its corner.
