Shares in Spire Healthcare Group PLC climbed on Friday as a report in the Economic Times suggested that India‘s Narayana Health is in talks with the company’s shareholders about buying a controlling stake.
According to Economic Times sources, Bengaluru-based Narayana Health’s top management has initiated detailed negotiations with large institutional shareholders of Spire and has reportedly received positive feedback.
In response, shares in Spire Healthcare rose 8.1% to 237.21 pence each in London on Friday morning.
Narayana’s Chair and Founder is Devi Shetty, a renowned heart surgeon and billionaire. His team are expected to meet shareholders next month to drum up support for the bid and are working with advisors to build a strategy, the report added.
Narayana Health has also sounded out global banks and financial institutions for $500 to $600 million in funding, the report said.
Citing people familiar with the matter, the Economic Times said Narayana plans to buy at least 51% of Spire via an open offer, but if Narayana manages to acquire around 75%, it may consider taking the company private.
London-based Spire Healthcare is the second-largest provider of private healthcare in the UK. It runs 40 hospitals and more than 50 clinics across the UK.
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