Spire Healthcare has extended the deadline for Toscafund to formalize its £1 billion takeover bid for the fifth time. The FTSE 250 hospital firm announced it has granted the investment firm, led by hedge fund manager Martin Hughes, until September 3 to finalize its 250p-a-share offer, pushing past the original 5 p.m. deadline on August 21.
Toscafund, Spire’s second-largest shareholder, first approached the company with its bid in May. The firm, known for its aggressive dealmaking, has been accumulating a significant stake in Spire, currently holding around 18 percent. This move comes after Toscafund opposed a previous 250p-a-share offer from Australian firm Ramsay Healthcare in 2021.
Spire, which operates 38 hospitals and over 60 clinics across England and Wales, is a leading private provider of knee and hip operations. The company also provides workplace health services to approximately 1,400 employers. In the previous year, Spire treated 1.4 million patients.
According to Spire's update to investors, Toscafund has completed its due diligence and is now seeking additional time to arrange financing for the acquisition. Spire’s board indicated in May that they would be 'minded to recommend unanimously' the possible offer to shareholders, provided it was at the proposed terms.
This situation follows earlier discussions Spire had in January with other private equity firms, Bridgepoint and Triton, though those talks did not result in a deal. Despite the ongoing takeover process, shares in Spire fell 1.48 percent to 232.5p, though they have seen a 37.5 percent increase year-to-date.