Ramsay Health Care’s proposed acquisition of Spire Healthcare Group is in doubt following Fidelity International’s decision to vote its 8.7% stake against the 240p per share bid recommended last month by Spire’s directors, Sky News has reported.

Alex Wright, a portfolio manager at Fidelity Special Situations Fund, said: “To 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.

“Spire Healthcare, one of the UK’s largest private hospitals, is well placed in the UK recovery post-Covid-19, which should feed into future earnings growth.

“In our opinion, Spire can return back to a 2015-2017 level of earnings over the next three to five years.”

Date published: June 11, 2021

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