Spire Healthcare has confirmed it is considering “a range of potential options” for the business, including a possible sale, following increased pressure from some of its largest shareholders.
In a statement to the London Stock Exchange, the private hospital group emphasised that no decisions have been made and it has not received any approaches or is in active discussions regarding a sale, as reported by City AM.
The company announced it has appointed Rothschild & Co as lead financial adviser to assist with the review, which aims to “enhance long-term shareholder value.”
This announcement comes after reports earlier this week suggested top investors, including Toscafund and Harwood Capital, had encouraged the company to consider a sale at a price of at least £3.40 per share.
As of Thursday’s close, Spire’s market capitalisation was £872m, according to LSEG data, although a deal could value the group at more than £1.4bn.
Rising NHS pressure helps boost Spire demand
Spire, which operates 38 hospitals and over 50 clinics across the UK, has benefited from increasing demand from patients seeking alternatives to overstretched NHS services.
The number of people waiting for NHS procedures rose to 7.4m in July, marking the second consecutive monthly increase, while A&E attendances reached record levels over the summer.
Analysts suggest this environment has helped drive more patients into private healthcare, with Spire also expanding its own NHS partnerships, which now account for more than 30 per cent of revenues.
Prices within these contracts climbed by 3.9 per cent in 2024.
Industry specialists observe that private hospital operators are attracting fresh international attention.
“There is a lot of US appetite for UK hospitals at the moment as private providers in the US are under pressure from Medicaid cutbacks, whereas in the UK there are opportunities to expand”, said Michelle Tempest of consultancy Candesic.
Spire had previously turned down a £2.50-per-share proposal from Australia’s Ramsay Healthcare in 2021, with investors – including Toscafund – contending the bid undervalued the enterprise.
Certain shareholders are now eager to realise profits following Spire’s operational recovery.
The firm stated that the present evaluation remains in its preliminary phases and might not lead to any deal.
