When this column last tipped Spire Healthcare Group in June, part of the company’s appeal was that it was a potential takeover target for Mediclinic International, the biggest shareholder. That approach, long expected, duly emerged on Monday, when Spire said the board had rebuffed a 298.6p cash and share proposal.
Mediclinic has argued that the proposal is a 30 per cent premium to Spire’s closing price on Tuesday last week, the day before it privately made its approach. It is, however, a 6 per cent discount to Spire’s year-to-date average price of 319p.
Spire has urged its shareholders to sit tight, while Mediclinic, which has until November 20 to “put up or shut up”, is now considering its options.
Investors would be wise to follow