Britain’s biggest private hospital operator has set a deadline for potential buyers to consider a takeover of the company amid pressure from shareholders to explore a sale.
Sky News has been informed that advisers to Spire Healthcare have instructed interested parties, including private equity firms, to express their interest by 20 January.
Although the date is not the deadline for submitting formal offers, it signals the board’s eagerness, led by Sir Ian Cheshire, to examine ways to maximize shareholder value early in the year.
Spire operates 38 hospitals, over 50 clinics, medical centers, and consulting rooms throughout the UK. It is the leading provider of hip and knee operations in the country.
In addition, the company manages a network of private GP practices and offers occupational health services to numerous corporate clients. Justin Ash, the CEO, confirmed in September following discussions with major investors, including the activist trust Achilles, that the company was exploring options such as a sale.
Spire’s stock has decreased by more than 25% in the past year, resulting in a market capitalization of £672m. The company’s real estate assets alone are valued at over £1.4bn.
Last month, Spire announced to the stock market that it was actively assessing strategies to enhance long-term sustainable shareholder value. As part of this evaluation, it has initiated talks with various parties regarding potential options, which could involve a sale of the company, value creation from the hospital property estate, and a heightened focus on private payors.
The process is ongoing, and at this early stage, there is no certainty about any potential offer for the company or its terms. Rothschild is advising Spire in this process.
In 2021, the healthcare group’s shareholders turned down a £2.50-a-share offer from Ramsay Healthcare of Australia, citing undervaluation of the business. The stock closed at 167p on New Year’s Eve.
Spire has chosen not to comment on the deadline for third parties to express interest in a deal.