(Alliance News) - Spire Healthcare Group PLC on Thursday reiterated its recommendation of Ramsay Health Care Ltd's takeover offer as it voiced disagreement with Glass Lewis's report on the deal.
The private hospitals operator noted that Glass Lewis has updated its report to reflect Ramsays' increased offer price of 250 pence per share, but has not changed its recommendation. In a letter, Spire encouraged the proxy advisory firm to reconsider its current voting recommendation.
In the letter, Spire noted the Glass Lewis report, and the update, stated: "Two of Spire's largest institutional shareholders have publicly expressed support for the stand-alone alternative and the company's share price has been trading meaningfully above the current offer price, providing limited incentive for shareholders to accept the current offer, in our view".
Spire said it has engaged with shareholders since the initial offer and highlighted that shareholder Mediclinic International PLC, holding a near 30% stake in the firm, is supportive of the deal.
Spire said three proxy and corporate governance advisory agencies, Institutional Shareholder Services, PIRC and Institutional Voting Information Service, have published recommendations to vote in favour of the transaction.
The board reiterated its unanimous recommendation that shareholders vote in favour of the deal at July 19's general meeting.
"The Spire board has assessed the transaction against Spire's existing strategy and long term forecasts, and concluded that the transaction is in the best interests of Spire shareholders," it said.
Shares in Spire were down 1.3% at 223.50p in London on Thursday. Mediclinic shares were down 0.4% at 297.00p in London and down 0.9% at ZAR58.76 in Johannesburg.
By Lucy Heming; lucyheming@alliancenews.com
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