One of Spire Healthcare’s largest investors is to reject a sweetened £1.4bn takeover offer, it was reported on Tuesday.
The UK hospital group initially agreed in May to be acquired by Australia’s Ramsay Health Care for 240p-per-share. That was sweetened to 250p-a-share, however, after some shareholders – including Fidelity International, which has a 9% stake, and Toscafund Asset Management – voiced concerns that the offer was too low.
On Monday, Spire said it would recommend the new offer, worth £1.4bn
But according to The Times, Toscafund, which owns 5.4%, believes the offer is still too low and so will not support it. Ramsay has already said that it will not increase its bid again.
In a statement, Toscafund said it continued “to believe strongly that Ramsay’s offer significantly undervalues Spire Healthcare and will vote against it”, the FT reported.
Spire, which has 39 hospitals and eight clinics, is widely seen as well-placed for a recovery once Covid restrictions ease. Demand is expected be further boosted by long NHS waiting lists.
The deal requires the support of 75% of shareholders, and already has the backing of Mediclinic International. The private healthcare group is Spire’s largest investor with a stake of just under 30%. It has said it will back the deal unless a competing bid is 10% higher than Ramsay’s.
Ramsay has 37 facilities in Britain, and a tie-up with Spire would see it overtake Circle Health to become the UK’s largest private hospital group.
