Spire Healthcare surges as Narayana Health said to be in talks over stake
Spire Healthcare jumped to the top of the FTSE 250 on Friday following a report that India’s Narayana Health is in talks with the company’s shareholders about buying a controlling stake.
FTSE 250
20,783.35
11:35 29/11/24
FTSE 350
4,565.02
11:35 29/11/24
FTSE All-Share
4,520.41
11:35 29/11/24
Health Care Equipment & Services
11,167.32
11:14 29/11/24
Spire Healthcare Group
235.00p
11:15 29/11/24
The Economic Times cited people familiar with the matter as saying that Narayana plans to buy at least 51% of Spire via an open offer. It also said that if Narayana manages to buy around 75%, it may consider taking the company private.
At 0845 GMT, the shares were up 9.3% at 240p.
Dan Coatsworth, investment analyst at AJ Bell, said: "Australia’s Ramsay Health tabled a £1 billion bid in 2021 but the target’s shareholders voted it down.
"Spire’s valuation has weakened considerably since mid-2023 and that looks to have put it on the radar of Indian private hospital group Narayana Health. Market chatter suggests Narayana is in talks to buy a controlling stake in Spire, sending shares in the UK stock up 8%.
"Spire has been a frustrating share to put it mildly, barely changing price since late 2021, which means investors might welcome the opportunity to sell out to Narayana if it’s paying a premium."