Private hospital group Spire Healthcare has granted investment firm Toscafund additional time to formalise its £1 billion takeover bid for the business.
The FTSE 250 company confirmed it has extended the deadline for Toscafund, which is run by hedge fund tycoon Martin Hughes, to finalise its 250p-a-share offer from 5pm today until September 3.
The decision marks the fifth time Spire Healthcare has pushed back the takeover deadline since Toscafund made its first approach to the company in May.
Spire Healthcare informed investors that Toscafund has now concluded its due diligence process. The investment firm requested extra time to finalize its financing arrangements for the proposed transaction.
Takeover bid details
Toscafund submitted its initial takeover proposal on May 14 at 250p a share, representing a 66 per cent premium to Spire Healthcare's closing share price on the previous day. The offer values the private hospital operator at approximately £1 billion.
In May, Spire Healthcare stated that while discussions remained at an early stage, the board 'would be minded to recommend unanimously... the possible offer' to its shareholders if a firm intention to make an offer was announced.
Following the announcement of the deadline extension, shares in Spire Healthcare fell 1.48 per cent to 232.5p. Despite the daily decline, the stock has gained 37.5 per cent so far this year.
Shareholding and previous talks
Toscafund was established in 2000 by Martin Hughes, who earned the nickname 'the Rottweiler' in financial circles for his aggressive dealmaking approach. The London-based investment firm is currently Spire Healthcare's second-largest shareholder.
Toscafund originally built a stake of nearly 11 per cent in Spire Healthcare while actively opposing a rival 250p-a-share takeover bid from Australian healthcare provider Ramsay Healthcare in 2021. Toscafund has since expanded its holding to around 18 per cent of Spire's issued shares.
The approach from Toscafund follows earlier takeover interest in the business. Spire Healthcare disclosed to investors in January that it was in discussions with private equity firms Bridgepoint and Triton, although those talks ended without a deal being reached.
Hospital operations and services
Spire Healthcare is one of the leading private healthcare providers in the United Kingdom, operating 38 hospitals and more than 60 clinics across England and Wales.
The group treated 1.4 million patients last year and stands as the country's leading private provider of knee and hip replacement operations by volume. In addition to its surgical facilities, Spire Healthcare provides occupational and workplace health services for approximately 1,400 employer clients.
