Spire Healthcare Extends Toscafund Takeover Deadline to June 25 Amid Buyout Talks
Key Developments in the Spire Healthcare and Toscafund Buyout Negotiations
Extension of Buyout Deadline
June 11 (Reuters) - Britain's Spire Healthcare said on Thursday that a deadline for Toscafund Asset Management to confirm its £1 billion ($1.33 billion) buyout proposal for the private hospital operator has been extended to June 25.
Implications of the Potential Deal
If agreed, the deal would hand the asset manager, also Spire's second-largest investor, control of Britain's largest provider of hip and knee operations, at a time when record NHS waiting lists have driven a surge in demand for private healthcare.
Key Details of the Toscafund Proposal
- Toscafund offered to buy Spire at 250 pence per share on May 14, a steep 66% premium to its close the day before.
- The asset manager built a near-11% stake in Spire while opposing Ramsay Health Care's 250 pence-per-share proposal for Spire in 2021; it now made its bid at the same price.
- In March, Spire said that its buyout talks with private equity firms Bridgepoint and Triton had ended.
- Shares in the hospital operator, which gained nearly 50% since Toscafund's proposal, were up 3.5% at 221.5 pence as of 1319 GMT on Thursday.
- Spire had launched a strategic review in September last year under pressure from activist investor Harwood Capital to consider a possible sale.
Exchange Rate Information
($1 = 0.7493 pounds)
Reporting Credits
(Reporting by Tuhina and Roshni Srivastava in Bengaluru; Editing by Subhranshu Sahu and Diti Pujara)
