Busi­ness In­sight


The Daily Telegraph - Business - - Business Comment -

The South Africabased pri­vate hos­pi­tals group Medi­clinic is hop­ing to end a dif­fi­cult year with a morale boost­ing ac­qui­si­tion by snap­ping up Bri­tish coun­ter­part Spire Health­care, writes Iain Withers.

How­ever, if it is go­ing to suc­ceed the FTSE 100 com­pany must lift its of­fer. Medi­clinic had a 298.6p cash-and-share of­fer re­buffed by Spire late last month.

An­a­lysts judged the move op­por­tunis­tic – while it rep­re­sented a 30pc pre­mium on Spire’s share price prior to the ap­proach, that’s be­cause its prey was at a low ebb fol­low­ing a profit warn­ing caused by a drop in NHS re­fer­rals and £27m set aside to com­pen­sate vic­tims of rogue breast sur­geon Ian Pater­son.

Medi­clinic will be un­der pres­sure on Thurs­day to pro­vide an up­date on its plans when it un­veils in­terim re­sults. Un­der UK takeover rules it has un­til a week to­day to put up or shut up. It al­ready owns 29.9pc of Spire. The saga is prov­ing a wel­come dis­trac­tion as Medi­clinic faces sub­dued trad­ing in South Africa, Switzer­land and Abu Dhabi. It is keen to di­ver­sify fur­ther away from its vo­latile home mar­ket. De­mo­graphic trends should un­der­pin long-term growth in health­care.

Pri­vate hos­pi­tals group Medi­clinic is hop­ing to snap up Spire

Danie Mein­t­jes Chief ex­ec­u­tive

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.