Britain's largest private hospital operator, Spire Healthcare, has imposed a deadline for potential buyers to declare their interest in acquiring the company. This move comes amid significant pressure from shareholders urging the board to explore a sale.
Deadline Set for Prospective Buyers
Sky News has learned that advisors to the healthcare giant have instructed interested parties, which include several private equity firms, to formally register their interest by 20 January 2026. This date is not a final deadline for formal offers but serves as a clear signal from Spire's board, chaired by City grandee Sir Ian Cheshire, of its intent to seriously evaluate options for maximising shareholder value in the early part of the year.
The company, led by Chief Executive Justin Ash, confirmed in September that it was examining strategic alternatives, including a potential sale. This followed discussions with major investors, such as the activist trust Achilles, concerning Spire's underwhelming stock market performance.
Market Pressure and Asset Value
Spire's share price has fallen sharply, declining by more than a quarter over the past year. This slump leaves the company with a market capitalisation of just £672 million, a figure that stands in stark contrast to the value of its physical assets. The group's property portfolio, comprising 38 hospitals and over 50 clinics and medical centres across the UK, has been independently valued at more than £1.4 billion.
In a statement to the market last month, Spire said it was "actively evaluating actions that could drive long-term sustainable shareholder value." The review includes discussions on a range of possibilities, such as a company sale, generating value from its substantial hospital estate, and an increased focus on private payors.
A History of Rejected Offers
The group is no stranger to takeover interest. In 2021, Spire's board rejected a £2.50-per-share offer from Australian healthcare provider Ramsay Healthcare, deeming it an undervaluation. The company's stock closed on New Year's Eve at just 167p, significantly below that previous bid level.
Spire Healthcare holds a dominant position in the UK's private healthcare sector. It is the country's largest provider of hip and knee surgeries and also operates a network of private GP practices and occupational health services for corporate clients.
The company is being advised by bankers at Rothschild. Spire has declined to comment on the newly revealed deadline for expressions of interest. The board has cautioned that the process is at an early stage and there is no certainty a formal offer will be made.
