Mediclinic walks away from £ 1.2bn Spire Healthcare bid after talks fail

● Controversial British business says it is confident in its independent future

Mediclinic International yesterday walked away from £ 1.2 billion takeover talks with the UK private hospital group Spire Healthcare after a breakdown in talks.

The South African-based firm said it was “disappointed” by the outcome after seeing a revised bid of 165p per share in cash rejected by the UK busi- ness. Spire said the proposed deal for the 70 per cent of the company Mediclinic did not already own undervalued the firm and its prospects.

Garry Watts, chairman of Spire Healthcare, said :“We note Mediclinic’s confirma - tion that it no longer intends to make an offer for Spire.

“The board carefully considered Medic linic’ s approach but determined that it did not reflect the true value of the company and was not in the best interests of shareholders as a whole. The board is highly confident in the future of Spire as an independent company under the leadership of Justin Ash and the potential to drive shareholder value over the medium term.

“We welcome Medic linic’s intention of remaining a supportive shareholder of Spire.” Mediclinic had until 1700 GMT yesterday to either make a new offer for Spire or walk away.

According to British takeo - ver rules, Mediclinic cannot make another offer for Spire for six months unless there is a change in circumstances.

Mediclinic bought its stake in Spire in 2015 as part of a drive to expand outside its home market, which also included an investment in Switzerland’s Hirslanden and the takeover of Al- Noor, a group with hospitals in Abu Dhabi.

Spire hit the headlines recently after a disgraced surgeon who treated patients at the firm’s hospitals was found guilty of 17 counts of wounding with intent, and three further wounding charges.

Ian Pat er son exaggerated or invented cancer risks and claimed payments f or more expensive procedures.

The group was forced to shell out £ 27.6 million to help compensate victims earlier this year, which led to pre- tax profits for the six months to 30 June tumbling to £ 8.9 million from £ 35.7m.

Spire also appointed Justin Ash new chief executive in September after Watts relinquished control of the FTSE 250 firm in June due to ill health.

Spire is one of Britain’s biggest private healthcare groups, with 39 private hospitals and 10 clinics. Its shares yesterday fell 5 per cent to 255p

Medic linic’ s South Africalisted shares gained more than 2 per cent in early trading, but turned negative and was down 1 per cent.