James Arnold, the head of investor relations at Mediclinic, said the company was disappointed that it could not reach an agreement with the independent directors of Spire.
“Mediclinic confirms that, following further consideration and discussions with the independent directors of Spire, it was unable to reach agreement on the terms of a transaction,” Arnold said.
Under UK takeover rules, Mediclinic is now blocked from making another offer for Spire for six months, unless there is a change in circumstances.
Spire said yesterday that Mediclinic upped its cash and shares approach to R23.97bn last week, from £1.2bn, but the board said this still undervalued the firm.
Garry Watts, the chairperson of Spire Healthcare, said the board carefully considered Mediclinic’s approach, but determined that it did not reflect the true value of the company and was not in the best interests of shareholders as a whole.
“The board of Spire (excluding Danie Meintjes, Mediclinic chief executive), in conjunction with its financial and legal advisers, reviewed the revised proposal and rejected it on the basis that it undervalued Spire and its prospects,” Watts said.
Mediclinic already owns 29.9% of FTSE 250-listed Spire, a stake it bought for about £430 million from private equity firm Cinven in 2015.
Spire is Britain’s second-largest healthcare company.
Mediclinic shares closed 2.16% lower at R101.75 on the JSE yesterday.