It would appear that there is some decent movement as far as the Spire Healthcare situation is concerned, according to those familiar with the matter. This is said on the basis that Hospital Corporation of America (HCA) is in talks with the 29.9% owner of Spire, Mediclinic as far as a potential deal to buy its stake.
This was bought off private equity at 360p (explaining recent share price peaks at this level), with the main point here being that with the shares currently standing only around 10p below the breakeven figure for Mediclinic, one can say that they are pretty well underpinned. In the ordinary course of events if Mediclinic wanted to bid for the whole company it would do so at a significantly higher price. But the situation here currently appears to be that it is HCA which is looking to offer a significant premium, of the order of 30% or 468% a share – the normal amount in such deals.
HCA wishes to do this before approaching the board of Spire and bidding for the rest of the company. The beauty of this particular rumour is that even if the detail is not 100%, we are looking at a set up where shareholders of Spire appear to be sitting pretty whether it is Mediclinic, HCA or, even no change as scenarios, given that Spire is back on an even keel for 2017 after issues with hospital roll outs and NHS pricing. Watch to see an sustained break of 360p for Spire as a sign things may finally be moving here.