Saturday 17 August 2019

Mediclinic to make no further swoop for Spire as takeover talks break down

The South African-based firm said it was “disappointed” by the outcome.

Generic health pics
Generic health pics

By Ben Woods, Press Association Chief City Correspondent

Mediclinic International said it will not make a further swoop for private hospital group Spire Healthcare after a breakdown in takeover talks.

The South African-based firm said it was “disappointed” by the outcome after seeing a revised bid of 165p per share in cash rejected by the company.

Spire said the proposed deal for the 70% of the company Mediclinic did not already own undervalued the firm and its prospects.

Garry Watts, chairman of Spire Healthcare, said: “We note Mediclinic’s confirmation that it no longer intends to make an offer for Spire.

“The board carefully considered Mediclinic’s approach but determined that it did not reflect the true value of the company and was not in the best interests of shareholders as a whole.

“The board is highly confident in the future of Spire as an independent company under the leadership of Justin Ash and the potential to drive shareholder value over the medium term.

“We welcome Mediclinic’s intention of remaining a supportive shareholder of Spire.”

Spire hit the headlines recently after a disgraced surgeon who treated patients at the firm’s hospitals was found guilty of 17 counts of wounding with intent, and three further wounding charges.

Ian Paterson exaggerated or invented cancer risks and claimed payments for more expensive procedures.

The group was forced to shell out £27.6 million to help compensate victims earlier this year, which led to pre-tax profits for the six months to June 30 tumbling to £8.9 million from £35.7 million.

Spire also appointed Justin Ash as new chief executive in September after Mr Watts relinquished control of the FTSE 250 firm in June due to ill health.

Spire is one of Britain’s biggest private healthcare groups, with 39 private hospitals and 10 clinics.

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