The board of Spire Healthcare has extended the deadline for a third time for one of its largest shareholders to make a firm offer to buy the private hospital operator.
On 25 June the deadline was extended to 5pm today (9 July), which has now been revised to 6 August.
Toscafund Asset Management, the company’s second largest shareholder with an 18% stake, requested more time to complete its due diligence on the 38 hospitals and more than 60 clinics owned by the company.
Toscafund told the board that the due diligence process is “well advanced” and that it continues to work towards the 250 pence a share non-binding cash offer it made in May, which values the business at £1bn.
The investor also updated the board on its progress on other aspects of the cash offer.
With the due diligence being “well advanced” and material progress being made in negotiation of definitive transaction documents, a further extension of the deadline was requested, and granted, to allow Toscafund to finalise its financing arrangements, which are “well advanced” and involve seeking a private credit rating.
Following a strategic review last year, the board was speaking with two interested parties concerning a sale of the business.
Bridgepoint Advisers and Triton Investment Advisers walked away. Then Toscafund entered the discussions as a potential suiter.