Mediclinic shares down as Spire takeover bid fails

Cape Town – Mediclinic International Plc’s [JSE:MEI] takeover bid of UK-based Spire Healthcare Group is off the table, the company announced in a shareholder notice on Monday.

“Mediclinic confirms that, following further considerations and discussions with the independent directors of Spire, it was unable to reach agreement on the terms of a transaction,” the JSE-listed private hospital group said.

Fin24 reported in October that Spire rejected a takeover proposal from Mediclinic International, its biggest shareholder, which currently owns about a third of Spire.

At the time, Mediclinic approached the company with an offer that valued its shares at 298.6 pence apiece in cash and stock, representing a 29% premium to Spire’s closing price on October 17, the day prior to the offer.

• READ: Top UK hospital firm rejects Mediclinic takeover offer 

Mediclinic said on Monday that it does not intend to make an offer for Spire and is bound by the restrictions under Rule 2.8 of the City Code on Takeovers and Mergers.

“Mediclinic is disappointed that it could not reach an agreement with the independent directors of Spire, but will continue to take a disciplined approach to capital allocation to ensure investments are in the best interests of Mediclinic shareholders. Mediclinic has every intention of remaining a supportive shareholder of Spire,” it said.

It further explained that Mediclinic reserves the right to announce an offer or take any other action which would otherwise be restricted under Rule 2.8 of the City Code within the next six months following the date of this announcement.

A copy of this announcement will be available on Mediclinic’s corporate website.

Shortly before noon Mediclinic shares were trading 4.04% down on the JSE at R99.80.