Spire Healthcare Group Plc rejected a takeover proposal from its biggest shareholder Mediclinic International Plc, saying an offer that values the U.K. private hospital operator at 1.2 billion pounds ($1.6 billion) “significantly undervalues Spire and its prospects.”
South Africa’s Mediclinic, which owns almost 30 percent of Spire, approached the company last week with an offer that valued its shares at 298.6 pence each, Spire said in a statement on Monday. The proposal comprised 150 pence in cash and 0.232 new Mediclinic shares per Spire share, it said.
“Shareholders are strongly advised to take no action in relation to the proposal,” the London-based private healthcare operator said. “There can be no certainty that an offer will be made, or as to the terms on which any offer might be made.”
Mediclinic, the combination of the biggest private health-care providers in South Africa and Abu Dhabi, has been on a buying spree. The takeover offer is its fourth proposed transaction this year, according to Bloomberg data.
Mediclinic is required under U.K. law to announce by Nov. 20 whether it plans to make a firm offer, the South African company said in a separate statement confirming the approach. It said a further announcement will be made in due course.