Spire Healthcare share price rises after it selling stake to South Africa's Mediclinic

 
Jessica Morris
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Spire is a private healthcare provider (Source: Getty)

Spire Healthcare shares rose 9.4 per cent to 350 pence per share today, propelling it to the top of the FTSE 250, after South African rival Mediclinic bought a stake in the private health firm from private equity firm Cinven.

Remgro, a major shareholder of South Africa's Mediclinic, bought a 29.9 per cent stake from Cinven for 360 pence per share, equal to £432m.

Cinven has been gradually shrinking its holdings after it floated the healthcare company in July last year.

Read more: Spire Healthcare lays out price range amid Bupa contract talks

"This is an exceptional opportunity for us to gain a strategic investor who understands our business and growth ambitions as we develop our asset base to meet the significant capacity growth we expect for the UK private healthcare sector," Robert Roger, chief executive of Spire, said in a statement.

"We are investing in a growing developed market while also diversifying into an attractive new geography with a strong currency," Danie Meintjes, chief executive of Mediclinic, said.

"Both Mediclinic and Spire will benefit from collaboration through the sharing of knowledge and experience and improving cost synergies and efficiencies." Danie Meintjes, chief executive of Mediclinic, said.

Read more: Cinven sells off £136m stake in Spire Healthcare

Mediclinic is a South Africa-based private hospital group with operations in Southern Africa, Switzerland and the United Arab Emirates.

Both Mediclinic and Remgro have said they do not intend to make an offer to buy the whole of the company.

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