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Cinven nets £432m in sale of Spire Healthcare stake

The buyout firm’s remaining 8.1 percent stake is subject to a lock-up agreement

London-based buyout firm Cinven has sold the majority of its remaining stake in Spire Healthcare to Johannesburg-listed Mediclinic International for £432 million ($683 million; €599 million), according to a Mediclinic stock market statement. Mediclinic will acquire the stake through Remgro, its major shareholder.

The sale of a 29.9 percent stake in Spire, which is listed on the London Stock Exchange, is just below the mandatory offer threshold and leaves Cinven with about an 8.1 percent shareholding, according to figures on Cinven’s website. Cinven’s remaining shares are understood to be subject to a lock-up agreement.

The exit was made from Cinven’s fourth fund. A spokesperson for the firm declined to comment on the number of investments left in The Fourth Cinven Fund, a 2006-vintage, €6.6 billion vehicle.

Cinven bought UK private healthcare company BUPA’s hospital assets in 2007 for £1.4 billion. The business was rebranded as Spire Healthcare, which acquired Classic Hospitals for £145 million and Thames Valley Hospitals for £23 million in 2008, and the London Fertility Clinic in two years later, according to Cinven’s website.

In July 2014, Spire listed on the London Stock Exchange with a market capitalisation of £842.3 million following its initial public offering, according to a stock market statement. Cinven retained a 62 percent stake following the IPO, and reduced its stake further in January to 48 percent and again in April to 38 percent, according to its website.

Cinven declined to comment on the firm’s future plans to exit Spire.