Spire springs back to health after bid from South Africa

SHARES in scandal-hit Spire Healthcare rocketed after the private hospital group rejected an ‘opportunistic’ takeover offer from a major shareholder.

Spire bosses said the 298.6p-per- share offer from South African private hospitals operator Mediclinic, which owns 29.9pc, significantly undervalued the British firm and shareholders should take no action.

Shares leapt 39.7p, or 15.2pc, to 301p, having tanked last month when bosses revealed profits slumped almost 75pc to £8.9m during the first half of the year.

Spire was hit by fewer NHS referrals as well as having to put aside £ 27m to compensate patients unnecessarily operated on at its hospitals by rogue cancer surgeon Ian Paterson, 59, who was jailed for 20 years in August.

Yesterday, analysts at Berenberg said prospects for Spire, which runs 38 hospitals and two cancer centres, were strong given predicted NHS demand, and Mediclinic should be applauded for spotting the chance to snap up the group cheaply.

They said they expected the bid to be an opening salvo from Mediclinic, which has until November 20 to make a formal offer. There has also been speculation that HCA is interested in buying Mediclinic’s stake.

Mediclinic, which is listed in Johannesburg and London, said it was considering its position.

An HCA spokesman said it was ‘unable to comment on market rumour or speculation’.