Fidelity joins investor revolt against Ramsayâs higher bid for Spire
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Alex Wright, Fidelity Special Situations Fund portfolio manager, said his view remains the same that the bid undervalues Spire, despite the Australian private hospitals operator sweetening its offer by 10 pence to £2.50 a share â an increase of £40 million.
Ramsay Health Care CEO Craig McNally is facing a battle to get a higher bid for UKâs Spire Healthcare over the line.Â
James Brickwood
âTo put this offer in perspective, the board turned down a previous 300p per share takeover approach in 2017 when the stock had recently traded at 350p (circa 20 times earning in 2015-2017),â Mr Wright told
Aussie healthcare provider ups bid for UK rival
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Ramsay makes increased final offer for Spire worth GBP1 04 billion
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Funding Overhang Weighs On Ramsay’s Rebound
10:31 AM
With earnings momentum coming out of covid, Ramsay Health Care looks set to rebound from the pandemic downturn in surgeries, but the Spire acquisition raises questions over the company s balance sheet and funding options
-Acquisition of UK-based Spire Healthcare threatens investment grade credit rating for Ramsay Health Care
-Company may be in need of up to $1.5bn in additional capital
-Sale and leaseback of Australian assets a likely option
By Mark Story
Despite some encouraging green shoots emerging for a primary casualty of the coronavirus pandemic, Ramsay Health Care ((RHC)), brokers are waiting for valuable insights into how its latest UK-based acquisition will be funded.
The takeover was also recommended by majority shareholder Mediclinic
Spire Healthcare PLC (LON:SPI) said it recommended a proposed £999mln cash offer put forward by Ramsay Health Care Ltd (ASX:RHC).
Shareholders will receive 240p, which represents a 24.4% premium to Tuesday’s closing price.
The FTSE 250 group said the acquisition will boost its strategy growth, while Ramsay said the combination builds a broader platform to take advantage of the opportunity for sustained growth in the £5.8bn UK private hospital sector.
Ramsay s UK network spans 22 private UK hospitals, nine treatment centres and three neurological units,
“Ramsay will work closely with the Department of Health & Social Care to ensure all shared objectives are closely aligned and we stand ready to support the NHS in tackling the significant increase in waiting lists and the return of elective procedures in the UK,” said chief executive and managing director Craig McNally.