UK HEALTHCARE GROUP
Mediclinic drops Spire takeover bid
The private hospital group says it could not reach a deal with the independent directors of Spire
Ten hours before Monday’s deadline, private hospital group Mediclinic informed the market that it was scrapping its bid to acquire the remaining 70.1% of UK-listed Spire Healthcare Group. The announcement prompted a 4% drop in the Mediclinic share price but much of this fall was recovered before the close of trade on Monday. Mediclinic said it could not reach a deal with the independent directors of Spire and stressed it “will continue to take a disciplined approach to capital allocation to ensure investments are in the best interests of Mediclinic shareholders”. Jean Pierre Verster, portfolio manager at Fairtree Capital, said the decision was disappointing because the circumstances currently surrounding Spire in particular, and the UK in general, meant that it was a good time to pursue a bid. “They are obviously keen to show the market they are disciplined in their capital allocation decisions but hopefully they won’t have to overpay at a later date,” said Verster. In terms of UK r...
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