Spire Healthcare shares leapt higher on Thursday after confirming it is in advanced discussions over a possible 250p per share cash offer from Toscafund Asset Management, representing a significant premium to the private hospital group’s closing price yesterday.
But the offer isn’t too different from the share price Spire was trading at before they announced a formal review process last year, following the stock’s decline over the past 6 months.
Nonetheless, the Spire said it has concluded the proposed price is one it would be minded to recommend to shareholders should Toscafund make a firm offer. The 250p offer follows a series of earlier approaches by Toscafund as part of the firm’s ongoing strategic review.
The deal could include the option for shareholders to elect for an unlisted rollover equity alternative on some or all of their holdings, should they wish to retain exposure to the business post-deal.
A trading update was released alongside the takeover offer, in which Spire’s start to the year was in line with expectations.
Spire has delivered adjusted free cash flow growth at a 32% CAGR between FY22 and FY25, with ROCE rising from 6.2% to 8.0% over the same period.
Spire Healthcare shares were 40% higher at the time of writing.