5th Jul 2021 18:28
(Alliance News) - Ramsay Health Care Ltd on Monday lifted its bid for Spire Healthcare Group PLC, making a 250-pence-per-share final offer.
The new proposal, up from the previous 240p-per-share bid, values London-based Spire at GBP1.04 billion on a fully diluted basis, and GBP2.11 billion on an enterprise value basis, Ramsay said.
Shares in Spire closed down 2.0% to 242.50p in London on Monday.
Holders of 30% of Spire shares have committed to vote in favour of the takeover, Sydney-based hospital operator Ramsay said.
"We are confident that our 250p cash offer per Spire share, which was reached after extensive negotiations with the Spire board, is fair and reasonable. It is therefore our best and final offer," Ramsay Chief Executive Craig McNally said.
In a trading update, Spire said revenue in the first five months of 2021 was higher than the same period in 2019, although NHS volumes were materially lower. The company expects the NHS to sign an increased number of contracts with the private sector in the second half, although it is continuing to await clarity. Its outlook is unchanged from that given in May, the company said.
Operating costs in the first half were "significantly affected" by Covid-19, Spire said, and the company is having to use more agency staff because its own staff are being required to self-isolate under the UK's test-and-trace rules.
By Ivan Edwards; [email protected]
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