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GB : Spire Healthcare - Big bid by Ramsay but won't be plain sailing

Australian listed Ramsay Healthcare has bid £2.40 per share for Spire. The deal is an all cash one and has been recommended by the Spire board. It also has irrevocable undertakings from 30.1% of shareholders (including the most obvious counter bidder Mediclinic). We do not think counter bids are likely as the price is too rich for PE and there are no obvious strategic bidders. Hence we think this is a good bid and should be acceptable to shareholders. But, there will be competition authority issues and getting the deal over the line will not be straight-forward. We would recommend investors lock-in gains if the shares close in on the bid price.


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