Mediclinic withdraws as Spire Healthcare rejects renewed offer
Updated : 13:56
Mediclinic International has walked away from talks to take over Spire Healthcare after the UK-focused hospital operator rejected a renewed offer.
London- and Johannesburg-listed Mediclinic, which owns 29.9% of Spire, said it no longer intends to make an offer for Spire and pledged to "continue to take a disciplined approach to capital allocation" in the best interests of its shareholders and of remaining a "supportive shareholder" of Spire.
Last week Mediclinic said it would consider share price movements before possibly making an amended offer after a 300p cash and shares proposal, was turned down by Spire's independent directors.
On Monday, Garry Watts, Spire's chairman, said: "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."
Ash, who only started in the role at the end of October, has been conducting a review of the portfolio and was said to be "encouraged" and "fully focused on the delivery of the company's strategy and realising the medium term growth opportunities available to Spire".
Spire confirmed the company is on track to meet existing guidance for the full year and is planning a capital markets day early next year to set out, amongst other things, its operational and strategic goals and opportunities.
Spire, which owns 39 private hospitals, 10 clinics and two cancer care centres in the UK, highlighted its "significant" investments in the business in recent years, including the acquisition of St. Anthony's in South London and the opening of two new hospitals in Manchester and Nottingham in 2017, "and expects to benefit from the returns on these investments over the coming years".