In a move that has sent shockwaves through the British business community, Spire Healthcare, one of the country’s leading private healthcare providers, has received a £1.5 billion takeover bid from a consortium of investors. The proposed deal, if successful, would see the company delisted from the London Stock Exchange, fuelling concerns about the increasing privatisation of the UK’s healthcare sector.
The consortium, led by Australian private equity firm Brookfield Asset Management, has offered to acquire all outstanding shares of Spire Healthcare at a price of 240 pence per share, representing a 24.7% premium over the company’s closing price on the day before the announcement. This offer values the entire issued and to-be-issued share capital of Spire at approximately £1.52 billion.
Spire Healthcare, which operates 39 private hospitals and clinics across the UK, has a long-standing history as a publicly traded company. The potential buyout, if approved by shareholders, would mark the end of the company’s tenure on the London Stock Exchange, sparking fears that another major British firm is being taken private.
“This proposed transaction represents a significant premium to Spire’s current share price and provides our shareholders with an attractive opportunity to realise their investment in cash,” said Justin Ash, Chief Executive Officer of Spire Healthcare. “Brookfield’s offer recognises the quality of our business and the dedication of our colleagues who provide excellent care to our patients.”
The move comes at a time when the UK’s healthcare sector is facing increasing pressure, with the COVID-19 pandemic exacerbating the strain on the National Health Service (NHS). Private healthcare providers, such as Spire, have played a crucial role in supporting the NHS by taking on additional patients and providing much-needed capacity.
However, the potential privatisation of Spire Healthcare has raised concerns among industry analysts and healthcare advocates. They argue that the trend towards private ownership of healthcare assets could undermine the principles of universal and equitable access to healthcare, which are the foundations of the NHS.
“The potential delisting of Spire Healthcare from the London Stock Exchange is a worrying development,” said Dr. Sarah Wollaston, a former chair of the House of Commons Health Committee. “We must ensure that any changes to the ownership structure of our healthcare providers do not compromise the core values of the NHS and its commitment to providing high-quality, affordable care for all.”
The proposed transaction is subject to regulatory approvals and the approval of Spire Healthcare’s shareholders. If the deal is successful, it will mark the latest in a series of high-profile private equity takeovers of British companies, further fuelling the debate around the role of private capital in the country’s key industries.
