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They can easily partner with healthcare/infrastructure funds or limited partners like SWFs. Question of Mediclinic and Tosca want out now or not. Even paying 250 would give them a great return after.

Let’s focus on the sale process at hand. Watch the harwood video, it’s recent.

As Harwood is saying, it’s like replicating what PE would do anyway. Conduct a SLB as private company. They could easily take out 700m, almost entire market cap, from a SLB.

Great insight from Harwood here. No one has thought of an MBO. Let’s see if Tosca are in. Need 75% of votes after all.

Around the 30min mark, Harwood saying they may join a consortium. Maybe an MBO is coming?

https://m.youtube.com/watch?v=2-pXpQ30Vw4&feature=youtu.be

Sky is well informed, so what happened between their 230p article and bridgepoints statement? Either board said offer too low and no extension or? And if that’s the case, good luck to the board facing the main shareholders. They clearly should have offered and extension and negotiate from there.

No, wrong all the way. Mediclinic have new owners and they want to sell their spire stake. It was widely reported. Break price maybe 1.70, but still think the Board has something lined up, otherwise they would have extended the pusu with Bridgepoint imo.

I’m sure Sky checked their sources on the 230p bid. So big question what happened right after? If the board refused an extension they clearly f@ up from shareholders point of view imo. Unless they knew PE were just sort of a stalking horse.

Stewart, that’s entirely incorrect. EBIT margins are 10%, not thin. Do you know how to run a sale and leaseback analysis? Capex falls, debt falls, interest payments lower and higher rental expenses. Latter can be backed easily up to 2.5x ebitdar. Run the maths, Spire can easily sale and leaseback 600-700m based on current ebitdar and FCF.

So who is left to buy spire? Imo strategic bidders who usually aren’t obviously publicly named. So if no bid incoming the board can do what PE would have done: sale and leaseback (easy 600-700m) and pay that 1£ to shareholders as a start.

No big drop, maybe down 10% or so. The sale process is still ongoing.

The board must have prepared strong alternatives, otherwise bye bye board seat?

The pusu is only valid for NAMED parties, not for other parties imo. So the board has to imo work a deal out asap now, they had enough time so far.

Haven’t found out why first Sky report initial 230p bid by Bridgepoint and then a day later they are out. The process has been going on for 6 months so buyers ought to roughly know what the ask is? I mean some have even stated publicly what their starting ask is. So why didn’t the board extend and negotiate PE up? And who are the strategic parties in the process? If the board doesn’t have a better bid on the table, how can they survive in their roles? Spent £7m and nothing to show? Seems like a career suicide for the Board? Well Mediclinic, Tosca and Harwood must be all over the situation this weekend I could imagine.

As a Board you would imo only not go into an extension of you have a higher bids otherwise. Otherwise you utterly failed your job imo. 230 and then extension and negotiate. Why not head into an extension and negotiate? Mediclinic are reportedly sellers. And they paid 360p I think so they imo unlikely they will break even.

The board had half a year to realise / generate shareholder value. They have to finally deliver.

So Bridgepoint pulled out not even 24h after they allegedly wanted to bid 230. That would have been a starting bid and probably gone into an extension. So why didn’t the board ask for an extension and negotiate? Sky reported 250 would have been the hurdle. That’s only a 20p gap. So unless the board really want to lose their seats when the large holders get rid of them potentially, they may have a higher bid on the table? Otherwise makes zero sense what happened.

Break price could be around 1.70.

Does the Board have other bids? How come first Bridgepoint according to Sky wants to bid an initial 230p and then they pull out? No negotiations? Which seems to imply the Board has other bids? What else could it mean?

From Reuters headlines, also on Interactive Broker news from Reuters

No, none of this makes any sense as it was reported Mediclinic wanted to sell their stake in Spire.

Maybe HCA, Cleveland and or IHH are in the process? Or more PE potentially.

No, Mediclinic were reported to be sellers.

Maybe HCA, Cleveland, Ramsay and or IHH could be still in the process? And/Or more PE players?

Sale process still ongoing at Spire Healthcare:

SPIRE HEALTHCARE GROUP PLC: REMAINS IN DISCUSSIONS WITH OTHER PARTIES IN RELATION TO A

POTENTIAL SALE OF COMPANY

Just came out on Reuters