Spire Healthcare rejects Mediclinic takeover, sales soar

Recent news that UK based Spire Health has rejected South African group Mediclinic’s cash and stock offer has led shares to soar by over 10%.

Established back in 2007, Spire Health has 39 hospitals under its umbrella, as well as 10 clinics and two specialist cancer care centres across the UK. With nearly 4,000 consultants, it is one of the leading private healthcare companies in the country.

Mediclinic is currently the company’s largest shareholder at around 30%, but this could be set to be overhauled following this refusal. The company has reportedly claimed to be now “considering its position,” regarding the matter.

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It currently operates a number of private hospitals across Africa, Europe and the UAE, but the possible acquisition of Spire would open up further revenue and provider an increased market presence in the UK.

The company could be set to revise its bid for Spire, and has led to growing interest surrounding Spire’s long -term potential in the UK healthcare market.

At present, Spire has responded to state that Mediclinic’s offer, where it has valued Spire at 300p per share, to be heavily undervaluing what Spire can offer patients and stakeholders long-term despite current economic uncertainties.