Mediclinic mulls hostile takeover of UK associate Spire
Mediclinic International is considering a hostile takeover of its UK associate, Spire Healthcare Group.
Mediclinic issued a statement on Monday morning confirming a statement Spire issued to its shareholders, saying the JSE-listed group had approached it to buy the 70.1% of Spire it did not already own.
Mediclinic’s offer of £1.50 cash and 0.232 Mediclinic shares per Spire share was rejected by the target company’s independent directors.
"As a consequence, Mediclinic is considering its position," Monday’s statement said.
According to Mediclinic, its cash and share offer equates to £3 per Spire share, a 15% premium to London-listed hospital group’s £2.61 closing price on Friday.
Spire has 401-million shares in issue, so buying the 70.1% it does not already own at £3 per share would cost Mediclinic about £842m.
Mediclinic said in a trading statement on October 17 that Spire made a provision amounting to £27.6m for the potential cost of a settlement relating to civil litigation over surgeon Ian Paterson, which is before taking account of any potential further recoveries from insurers.
UK media reported in September that Spire had agreed to contribute just over £27m to a fund to compensate hundreds of Paterson’s victims.
He was jailed in 2015 after being convicted on charges relating to performing unnecessary surgeries, based on erroneous diagnoses of cancer.
Mediclinic shares were down 0.67% at R115 at 9.30am on the JSE on Monday.