Britain’s biggest private hospital operator has handed prospective suitors a deadline to pursue a takeover of the company amid shareholder pressure on it to explore a sale.
Sky News has learnt that advisers to Spire Healthcare have told parties including private equity firms to register their interest by 20 January.
The date is not a deadline for formal offers, but nevertheless underscores the desire of Spire’s board – led by the City grandee Sir Ian Cheshire – to explore options for maximising shareholder value during the early part of this year.
Spire runs 38 hospitals and more than 50 clinics, medical centres and consulting rooms across the UK.
It is the largest provider of hip and knee operations in the country.
The company also runs a network of private GP practices, as well as providing occupational health services to hundreds of corporate clients.
Run by Justin Ash, chief executive, the company confirmed a Sky News report in September that it was examining options including a sale.
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That followed discussions with major investors, including the activist trust Achilles, over the company’s disappointing share price performance.
Spire’s stock has plunged by more than a quarter over the last year, leaving it with a market capitalisation of only £672m.
The company’s real estate assets alone have been valued at more than £1.4bn.
Last month, Spire told the stock market that it was “actively evaluating actions that could drive long-term sustainable shareholder value”.
“As part of this review, it has commenced discussions with a number of parties in relation to a range of potential options, which may include (but is not limited to) a potential sale of the company, value generation from the hospital property estate and increased strategic focus on private payors.
“The process remains ongoing and at this early stage there can be no certainty either that any offer will be made for the company nor as to the terms of any offer, if made.”
Spire is being advised by bankers at Rothschild.
The healthcare group rejected a £2.50-a-share offer from Australia’s Ramsay Healthcare in 2021, saying it undervalued the business.
Its stock closed on new year’s eve at just 167p.
Spire declined to comment on the deadline for third parties to express an interest in a deal.
