Shares in Spire Healthcare rose in excess of 16% on Monday following the company's confirmation that it is holding early-stage discussions with private equity parties, after earlier media speculation.
Spire said in a statement that Bridgepoint Advisers Limited and Triton Investment Advisers LLP are among the groups engaged in talks with the company. The discussions are taking place as part of a strategic review that the hospital operator initiated in September.
The company emphasised that the discussions remain at an early stage. Spire noted there is no guarantee that any formal offer will be forthcoming, nor that the terms of any potential offer would be known if one were made.
Regulatory procedures under the U.K. Takeover Code set a clock on the situation. Bridgepoint and Triton are required, by 5 p.m. on Feb. 21, to either announce a firm intention to make an offer for Spire or confirm they do not intend to do so. That publication deadline may be extended with the consent of the Takeover Panel.
Spire Healthcare operates a network of hospitals and outpatient facilities across the United Kingdom. The company runs 38 hospitals and more than 50 clinics, medical centres, and consulting rooms across England, Wales, and Scotland.
Context and implications
The share-price move reflects investor reaction to the confirmation of talks with well-known private equity firms. The notice that discussions are preliminary and that no certainty exists over an offer or its terms underscores the open-ended nature of the situation.
The regulatory deadline set by the Takeover Code provides a timetable for market participants to watch, though the panel can agree to extend that timetable with consent.
Summary
Spire Healthcare confirmed it is in early talks with Bridgepoint Advisers Limited and Triton Investment Advisers LLP as part of a strategic review announced in September. The company warned there is no certainty any offer will be made or on what terms. Under the U.K. Takeover Code, the parties must declare by 5 p.m. on Feb. 21 whether they intend to make a firm offer, subject to possible extension with Takeover Panel consent. Spire operates 38 hospitals and more than 50 clinics, medical centres, and consulting rooms across England, Wales, and Scotland.