Shareholders oppose Ramsay's takeover of Spire Healthcare

(Sharecast News) - Spire Healthcare shareholders have voted against the company's £1.4bn takeover by Australia's Ramsay Health Care, sending shares in the UK private hospital group tumbling.
Spire said on Monday that total votes in favour of the deal were 69.88% at the General meeting and 72.07% at the Court Meeting, coming in below the 75% acceptance threshold.

"Accordingly, the acquisition of Spire by Ramsay has been terminated and the scheme has lapsed," the company said.

Ramsay had sweetened its bid for Spire earlier this month to 250p a share from 240p. However, shareholders Toscafund Asset Management and Fidelity made it clear that even if the improved offer significantly undervalued the group.

Had the acquisition gone ahead, it would have created the largest private hospital company in the UK.

At 1300 BST, Spire shares were down 11.5% at 208p. They were already down 6% earlier in the day amid expectations the deal would be voted down.

Spire chairman Sir Iain Cheshire said: "We respect the decision of our shareholders and will now continue to execute our strategy to deliver growth and create greater value through supporting private patients and the NHS. Throughout our ongoing engagement with shareholders, feedback has been overwhelmingly positive towards the long-term strategy and our strong management team. We remain confident in the company's long-term fundamentals and are well positioned for success as a standalone business.

"Whilst the majority of shareholders voted in favour of the scheme, the result is clear. As a board, we are committed to representing the interests of our shareholders and have fulfilled our duty to present the proposed Transaction for their consideration, given its value and structure."