RAmsay Healthcare’s £ 1bn takeover bid for UK private hospital supplier Spire could be in doubt after a major investor rejected the deal, saying it under- massively valued the company, according to reports Julia bradshaw.
Fidelity International is Speyer’s largest institutional investor, listed in London, with an 8.6% stake in the hospital operator. Alex Wright, the Fidelity portfolio manager whose funds hold shares in Spire, said the offer “significantly undervalues the shares” and that Fidelity would not accept the offer of 240 pence per share.
The offer reflected a 56 pc premium to Speyer’s share price before news of the deal broke.
Mr Wright said: “To put this offer into perspective, the board rejected an earlier approach of a 300 pence per share takeover in 2017 when the stock recently traded at 350 pence.
“Spire Healthcare, one of the UK’s largest private hospital groups, is well positioned in the UK recovery from Covid, which should fuel future profit growth. “
He added that he believed Spire could significantly increase its profits over the next three to five years.
It is not known how much support Fidelity has among other shareholders. It could be difficult for the investor to gain the support necessary to reject the deal, which must be approved by three quarters of the investors.
Mediclinic International, another London-listed hospital supplier, owns 29.9% of Speyer’s shares and has already pledged to vote in favor of the takeover.