Toscafund Asset Management is set to take private UK hospital operator Spire Healthcare as part of a consortium deal valuing the listed healthcare group at approximately £1.03bn, according to a report by the Independent.
The acquisition is being made through newly established vehicle Tulip UK, backed by funds advised or managed by Toscafund, THCP Advisory and Ares Management. Toscafund, already Spire's second-largest shareholder, had been in discussions with the company over a potential transaction for several months.
Under the agreed terms, Spire shareholders will receive 250p per share, representing a premium of around 66% to the company's closing price on 13 May, before details of the talks became public.
The transaction will take Spire off the London market at a time when the UK-listed healthcare sector is facing a combination of cost inflation and subdued investor sentiment.
Spire operates 38 hospitals and approximately 55 clinics across England, Wales and Scotland, alongside private GP practices and occupational health services serving more than 1,400 employers.
The company has been conducting a strategic review since September last year. Tulip UK plans to undertake a further review lasting up to 12 months once the acquisition is completed, including an assessment of Spire's primary care operations.
That process could result in the disposal of parts of the private GP business and a corresponding reduction in Spire's workforce, according to the consortium's offer document.
For Toscafund, the transaction provides an opportunity to take a significant healthcare asset private and pursue a longer-term investment strategy away from the pressures of public markets.
Where deep modelling meets mortgage credit
Greg Valli has been part of two of the three decades of Ellington Management Group. During that period, the firm has enjoyed a rapid rise…
More
Crowded Treasury shorts raise prospect of sharp squeeze
Growing bets on further rises in US Treasury yields are increasing the risk of a rapid reversal if incoming economic data points to a…
More
Hedge funds take record 7% share of Treasury market
Hedge funds have become an increasingly important presence in the roughly $30tn US Treasury market, helping absorb government debt as…
More