London: UK private hospital group Spire is to list its shares on the London Stock Exchange, seeking to raise £315m ($534.6m) to cut debt and finance its expansion plans.
Spire is likely to be one of the last companies to seek a flotation before the traditionally quiet summer period. Proceeds from UK listings have more than tripled this year as companies rush to capitalise on firm stock markets and private equity funds seek to cash in on their investments.
The company, owned by private equity firm Cinven, will be valued at around £1bn, excluding debt, in the sale of new and existing shares, two sources familiar with the matter said yesterday.
Cinven created Spire through its 2007 purchase of the hospital business of private healthcare group Bupa for an enterprise value (including debt) of £1.4bn, since when Cinven has not taken money out of the company. The private equity firm has not given the equity value of Spire at the time of its investment.
Spire Chief Executive Rob Roger said on a telephone call with journalists that Cinven would retain a substantial stake in the business. He said Spire was planning two new regional hospitals by 2017 and another two in London further in the future, as well as four more radiotherapy centres.
Spire, which runs Britain’s second-largest chain of private hospitals, generated core earnings (EBITDA) of £154.1m in 2013 after rental costs. The firm will have debt of just under £500m after its listing. The chain refinanced its loan facilities in 2013 with a sale and leaseback of 12 of its 39 hospitals, raising around £700m.Reuters
