London-listed Spire Healthcare ($SPI.L) saw its shares skyrocket over 40% on Thursday after receiving a £1 billion ($1.35 billion) buyout proposal from its second-largest shareholder, Toscafund Asset Management.
The Deal Details:
- Premium Offer: The 250 pence per share cash proposal represents a massive 66% premium over Spire’s previous closing price.
- Market Reaction: Spire shares surged 43.3% to 215.5 pence, the largest gain on the London stock market today.
- Deadline: Under UK takeover rules, Toscafund has until June 11 to announce a firm intention or walk away.
Strategic Context: A Long Road to a Sale Spire has been under pressure to find a buyer since launching a strategic review in late 2025, driven by activist investor Harwood Capital.
- Failed Talks: Previous discussions with private equity firms Bridgepoint and Triton failed to materialize earlier this year.
- The Full Circle: Interestingly, Toscafund is offering the same price (250p) that it helped block back in 2021 when Australia’s Ramsay Health Care attempted a takeover.
- Declining Valuation: Despite the surge, Spire’s shares have lost nearly 50% of their value since 2016, dragged down by NHS revenue volatility and rising operational costs.
Financial Outlook: Spire reports that trading through April 2026 remains in line with expectations. The company forecasts 2026 adjusted core profits to be broadly consistent with 2025 levels.
The Bottom Line: For Toscafund, this bid is a play for control over a prime private healthcare asset at a price they once deemed too low for others. If the deal proceeds, it marks the end of Spire’s tenure as a public company and a significant consolidation in the UK’s private medical sector.
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