- Major investors this week urged the business to consider a sale
Shares in private hospital giant Spire Healthcare soared after it put itself up for sale.
The FTSE 250 company said it was in talks over ‘a range of potential options’ after pressure from shareholders.
One possibility being considered is the sale of the company.
The update pushed shares up more than 18 per cent in early trading yesterday before it closed 14.1 per cent, or 31p, up at 247p.
Spire is among the UK’s largest private healthcare businesses, running 38 hospitals and more than 50 clinics across England, Scotland and Wales.
The group said it is working with advisers from Rothschild & Co and has held ‘discussions with a number of parties’.
Boost: Spire is among the UK’s largest private healthcare businesses, running 38 hospitals and more than 50 clinics across England, Scotland and Wales
But it said it had not yet received any approaches from potential buyers.
‘This process is highly preliminary and no decision has been made regarding whether any such option will be pursued at this stage,’ it said.
Spire chairman Sir Ian Cheshire said: ‘In July we made clear that the board believed that Spire was undervalued by the market, given its strategic progress and property underpin, and that we would continue to actively evaluate and implement any appropriate action that drives long-term shareholder value.
‘To that end, the board decided to appoint Rothschild to assess a range of options, which may include a potential sale of the company.
‘At the same time, we remain focused on delivering both our strategy and outstanding personalised care for our patients.’
Major investors this week urged the business to consider a sale.
Harwood Capital Management, which owns about 5 per cent of Spire Healthcare, claimed that the ‘current share price fails to reflect the company’s value’ – in particular its hospital portfolio and its occupational health business.
Seb Jantet, healthcare analyst at business advisory service Panmure Liberum, said: ‘[Yesterday’s] news isn’t really a massive surprise given the share price performance.’
But he said ‘the question is whether it actually leads to anything’, pointing out that the company ‘has been the subject of bid speculation for years’.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
