London's Spire Healthcare gets $1.35 billion buyout proposal from Toscafund
Spire Healthcare Receives Buyout Proposal from Toscafund
May 14 (Reuters) - British private hospital group Spire Healthcare said on Thursday it received a buyout proposal worth 1 billion pounds ($1.35 billion) from its second-largest shareholder, Toscafund Asset Management, sending its shares up more than 40%.
Spire's board said it would recommend the potential cash bid to shareholders if Toscafund tables a formal offer.
Key Details of the Buyout Proposal
Here are some details:
Proposal Terms and Share Price Impact
- The 250 pence per share proposal represents a 66% premium to Spire's last closing share price.
- Spire shares surged 43.3% to 215.5 pence, making the stock the biggest gainer among all London-listed stocks.
Timeline and Takeover Rules
- Toscafund must announce a firm intention to make an offer by June 11 or walk away under UK takeover rules.
Background and Previous Buyout Discussions
- The proposal follows a prolonged search for a buyer. Spire confirmed in January it was in discussions with investment firms Bridgepoint and Triton regarding a potential takeover but Triton pulled out.
- Spire launched a strategic review in September 2025 after activist investor Harwood Capital Management urged it to consider a sale.
Toscafund's Stake and Previous Bids
- Toscafund, which built its stake to nearly 11% in Spire while blocking Australia's Ramsay Health Care's 250 pence per share bid in 2021, now proposes the same price.
Spire's Share Performance and Financial Outlook
- Spire shares have lost nearly half of their value since hitting 411 pence in September 2016, pressured by investor concerns over profitability, UK National Health Service revenue volatility, and rising costs.
- Spire said trading in the first four months to April 2026 has been in line with expectations and forecasts 2026 adjusted core profit broadly in line with 2025.
Exchange Rate Information
($1 = 0.7398 pounds)
Reporting and Editorial Credits
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Emelia Sithole-Matarise)
