JOHANNESBURG (Reuters) - South African private hospital group Mediclinic does not intend to make another offer for Spire Healthcare, the firm said on Monday after the British company rejected an earlier bid.
Spire, in which Mediclinic holds a stake of almost 30 percent, last month rejected a full takeover offer which valued the company at 1.2 billion pounds ($1.6 billion).
Mediclinic had until 1700 GMT on Monday to either make a new offer for Spire or walk away. According to British takeover rules, Mediclinic cannot make another offer for Spire for six months unless there is a change in circumstances.
Mediclinic bought its stake in Spire in 2015 as part of a drive to expand outside its home market, which also included an investment in Switzerland’s Hirslanden and the takeover of Al-Noor, a group with hospitals in Abu Dhabi.
“Mediclinic is disappointed that it could not reach an agreement with the independent directors of Spire,” the firm said, after Mediclinic held talks with directors following Spire’s rejection of its offer made in October.
Mediclinic said it intended to remain a “supportive shareholder” in the British firm.
Mediclinic’s South Africa-listed shares gained more than 2 percent in early trading after the announcement, but turned negative and was down 1 percent at 103 rand by 0749 GMT.
Reporting by TJ Strydom; Editing by Louise Heavens and Edmund Blair