Spire Healthcare jumps in London, market bets on reorganisation

(Il Sole 24 Ore Radiocor) - Spire Healthcare jumped almost 16% in London late Friday morning (19 September), in a stable Ftse 100, after the private British hospital group confirmed the launch of a strategic review that could also include the sale of the company. "The current market value does not reflect assets or operational progress," the board said in a note, highlighting the company's £1.4 billion-plus property portfolio and well-invested asset base. The company, which is being advised by Rothschild & Co, pointed out that the process is at a 'highly preliminary' stage and that there is no certainty about the submission of bids or the terms of any sale. Moreover, at the moment, Spire has not received any approaches and is not in negotiations with any counterparty.

British media rumours have reignited speculation about the future of the group, with activist fund Achilles - which holds around 5% of the capital through Harwood Capital - at the forefront of urging the board to consider the option of a sale. According to some analysts, the group - which capitalises at around £820 million - is undervalued relative to the value of its assets alone. Spire, led by CEO Justin Ash and chaired by Sir Ian Cheshire, operates 38 hospitals and more than 50 clinics and medical centres across the UK, and is the nation's leading provider of orthopaedic surgeries such as hip and knee replacements.