Penta, Toscafund agree £75.2m Circle take-private

Kenny Wastell
30 March 2017

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Penta Capital and Toscafund Asset Management have agreed to wholly acquire listed healthcare company Circle Health, in a deal giving the business an equity valuation of ТЃ75.2m.

In addition to receiving approval from the company's board of directors, the bidders have obtained irrevocable undertakings accounting for 64.3% of the issued stock in the company.

Circle's existing shareholders include BlackRock, Landsdowne Partners and Balderton Capital, as well as company management and a number of hedge funds. The company listed in 2011 after reportedly raising up to £120m from institutional fund managers.

The proposed take-private deal will see Penta and Toscafund acquire a 73.25% stake, with shares valued at 30 pence apiece. This is in addition to Toscafund's existing 26.75% stake.

The offer values shares at 25% above their price of 24 pence on 28 March and 35% above their average price of 22.2 pence over the preceding three-months.

Founded in 2004, Circle operates hospitals, rehabilitation and health services in the UK. It operates two private hospitals and two private clinics, in addition to running a daycare centre and a hospital for the NHS.

Circle generated a turnover of £133.6m in 2016, up from £127.8m the year before, according to a statement. The company's pre-tax loss fell to £8.1m from £11.7m during the same period.