Spire Healthcare PLC saw its shares surge by 46.78% to 220.75 pence after revealing it had received a non-binding cash takeover proposal from Toscafund Asset Management at 250 pence per share. The bid values the company’s entire issued share capital at roughly approximately .
After reviewing Toscafund's approach with its advisers, the Spire board said it would be minded to recommend the offer unanimously to shareholders if a firm intention to make an offer is announced on the same financial terms. The company added it is now in discussions with Toscafund while the asset manager carries out confirmatory due diligence.
The proposal stems from a strategic review Spire initiated in September 2025, prompted by pressure from activist investor Harwood Capital Management to explore a sale. The bid arrives after earlier takeover talks with Bridgepoint and Triton were brought to an end in March.
Alongside the takeover disclosure, Spire issued a trading update ahead of its Annual General Meeting stating that trading in the first four months of 2026 has been in line with expectations. The company highlighted continued strong growth in private patient revenue, with particularly robust expansion in self-pay demand.
Analyst reaction included a comment from Miles Dixon of Peel Hunt, who observed that Spire has endured an extended period of bid speculation. He said: "We see value in excess of 250p at Spire - the UK landscape is only moving in one direction for private care - and a business that is fundamentally improved."
The move in Spire shares was supported by a generally constructive market. The FTSE 250, where Spire is listed, gained 0.62% on the day. UK equities were further buoyed by stronger-than-expected Q1 2026 GDP growth of 0.6% quarter-on-quarter, up from 0.2% in Q4 2025, with the services sector cited as the main contributor to the acceleration.
Summary
Toscafund has made a non-binding 250p per share cash proposal for Spire Healthcare, valuing the company at about . The board says it would be prepared to recommend the offer if it becomes a firm bid on the same terms and talks are continuing as Toscafund undertakes confirmatory due diligence. Spire also reported trading in early 2026 in line with expectations and strong private patient revenue growth.
Key points
- Toscafund has submitted a non-binding takeover proposal at 250p per share, valuing Spire at about .
- The Spire board indicated it would be minded to recommend the offer unanimously if a firm intention is announced on the same terms and discussions are ongoing while confirmatory due diligence proceeds.
- Trading in the first four months of 2026 was in line with expectations, with private patient revenue, notably self-pay, continuing to grow strongly. The FTSE 250 and UK GDP data provided a positive market backdrop.
Risks and uncertainties
- The proposal is non-binding and subject to confirmatory due diligence - there is no guarantee a firm offer will be made, affecting shareholders and the healthcare sector.
- Previous takeover discussions with other bidders ended in March, indicating potential for negotiations to fail or be protracted, which may create continued speculation in the market - relevant for investors in private healthcare and mid-cap UK equities.
- Market conditions and macroeconomic developments could change, which may influence investor sentiment toward Spire and comparable companies listed on the FTSE 250.