News Article

Dr Leonid Shapiro interviewed on rumoured Spire acquisition

6 December 2024

Dr Leonid Shapiro was asked to share his expertise and insight on the speculation surrounding Spire Healthcare Group plc and its potential acquisition by Narayana Health one of India’s largest hospital groups. Specialist healthcare publications Healthcare Business International and HealthcareInvestor both reached out to Candesic Managing Partner Leonid regarding his perspective on the situation.

Spire Healthcare’s shares surged last week, after rumours that Narayana Health, led by Dr. Devi Shetty, was in talks to acquire the UK hospital group. The speculation stemmed from an article in The Economic Times, which claimed that the two companies were in “advanced talks” for a controlling stake acquisition. However, Narayana quickly issued a statement denying any “material information” and the share price later fell back.

Leonid commented that while Indian operators, like Narayana, often look to expand internationally, the UK presents significant challenges. He noted the high costs associated with UK hospital operations—particularly real estate, staffing, and capital expenditure— can make such acquisitions difficult.

He also added that as Spire is listed, any takeover talks would need to be publicly disclosed, meaning there are no official material talks between Spire and any interested party.

He also emphasized that while the UK remains an attractive market due to NHS pressures and growing private healthcare demand, the market also seemed sceptical about this deal taking place. As he put it, “Spire’s stock shot up to 240 but quickly dropped back to the 220s. The market doesn’t necessarily think this deal is likely to happen”.