Hospital operator Spire considering potential sale

Private healthcare giant Spire has said it is considering a sale after pressure from shareholders.

Shares in FTSE 250 firm Spire Healthcare shot higher on Friday morning after it revealed talks over “a range of potential options”, including a potential sale deal.

Spire is among the UK’s largest private healthcare businesses, running 38 hospitals and more than 50 clinics across England, Wales and Scotland.

The company said it is working with advisers from Rothschild & Co to review its options and has now held “discussions with a number of parties”.

“This process is highly preliminary and no decision has been made regarding whether any such option will be pursued at this stage,” the company said.

It added that it has not yet received any approaches regarding a takeover deal.

Sir Ian Cheshire, chairman of Spire, said: “In July we made clear that the Board believed that Spire was undervalued by the market given its strategic progress and property underpin, and that we would continue to actively evaluate and implement any appropriate action that drives long term shareholder value.

“To that end, the board decided to appoint Rothschild to assess a range of options, which may include a potential sale of the company.

“At the same time, we remain focused on delivering both our strategy and outstanding personalised care for our patients.”

It follows calls from major investors at the business on Thursday urging Spire to look at a sale in order to secure returns for its shareholders.

Harwood Capital Management, which owns around 5% of Spire, is among shareholders urging it to review a possible sale.

Harwood said: “We believe Spire’s current share price fails to reflect the company’s value, most notably its unencumbered hospital portfolio worth in excess of £1.4 billion and its occupational health business, where management has an ambition to deliver £40 million per annum of ebitda (earnings before interest, tax, depreciation and amortisation) over the medium term.”

Panmure Liberum analyst Seb Jantet said: “Today’s news isn’t really a massive surprise given the share price performance.

“The question is whether it actually leads to anything.

“The property value isn’t hidden – Spire are quite open about it and Spire has been the subject of bid speculation for years.”

Shares were 13% higher in early trading.