Spire Healthcare considers sale as shareholders express frustration over valuation

Spire Healthcare, one of the United Kingdom’s leading private healthcare providers, is actively weighing up a potential sale. The company, currently listed on the FTSE 250, faces mounting discontent from key shareholders and its board regarding its £1 billion valuation on the London Stock Exchange.

Spire, which operates 38 hospitals and more than 50 clinics, medical centres, and consulting rooms across Britain, has appointed Rothschild to advise on its future. The board has commenced a process to hold discussions with various parties regarding options for the business, among which a full sale is being considered. According to recent statements, this process remains highly preliminary and no definitive decisions have yet been made.

This move follows public expressions of dissatisfaction in July, when Spire described itself as undervalued by the market. Harwood Capital Management, possessing a roughly five per cent stake, has led the chorus of frustration, planning to engage directly with the company’s leadership. Toscafund, another significant investor, is reportedly sympathetic to Harwood’s perspective.

Chairman Sir Ian Cheshire remarked that the board remains convinced of Spire’s strategic progress and substantial property assets. He emphasised a commitment to evaluating any course of action that would maximise long-term shareholder value. These comments have been supported by a nine per cent rally in Spire’s share price, which now pegs the company’s worth at around £1 billion.

Mediclinic Group stands as Spire’s largest shareholder, holding just shy of 30 per cent of the company. The board includes Dr Ronnie van der Merwe as Mediclinic’s representative. Spire’s chief executive, Justin Ash, has repeated the board’s satisfaction with ongoing efficiency measures and capital investment, noting that market prices still fail to reflect these improvements or the underlying value of its freehold property portfolio.

The current developments recall a previous failed takeover in 2021, when a £1 billion offer from Ramsay Health Care was rejected by shareholders despite board support. Mediclinic had itself seen an earlier approach rebuffed in 2017. Spire now remains at a crossroads, with options open and its leadership under pressure to realise the company’s full market potential.

Industry analysts cite structural trends favouring private medical insurance, greater NHS engagement, and further opportunities for margin expansion. They note the quality of Spire’s service offering has improved markedly over recent years. Whatever course is chosen, the coming months will be crucial in shaping Spire Healthcare’s position within the UK’s private healthcare sector.