Shares in Spire Healthcare jumped by over 44% after it received a non-binding proposal from its second largest shareholder, Toscafund, valued at approximately £1bn.

The offer, which comprises a possible cash valuation of £2.50 per Spire Heathcare share, follows a number of earlier proposals from the private equity firm regarding a possible offer for the FTSE 250 company.

The proposal also includes an option for Spire Healthcare shareholders to elect for an unlisted rollover equity alternative in respect to some or all of their shares.

Spire Healthcare said that over multiple years, it has made "significant progress in strengthening care quality", diversifying revenue streams and driving efficiencies.

These actions have supported adjusted free cash flow to grow at a compound annual growth rate of 32% and return on capital employed from 6.2% to 8% between the 2022 and 2025 financial years.

While the Spire Healthcare board said it remains highly confident of its standalone strategy and value creation opportunities, it is minded to recommend the offer to its shareholders, should Toscafund state a firm intention to make an offer.

Under takeover rules, Toscafund must either announce a firm intention to make an offer or state that it does not intend to make an offer by 11 June.

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