Primary Health Properties on Thursday unveiled plans for a takeover of rival MedicX to create a £2.3 billion empire of GP surgeries and clinics.
The all-share merger, which values MedicX shares at 88.7p, or £393 million, will create a FTSE-250 firm that has 479 properties, many of which are leased to the NHS and used for X-rays and blood tests.
Harry Hyman, PHP boss, will lead the new larger company. The firm is looking to capitalise on increased demand for space as the Government looks to free up hospital beds.
Hyman said: “It is all about moving care out of expensive and inflexible hospitals, driven by cost saving pressures and technology advancements that aren’t in old hospitals.”
Nexus, a management company used by PHP and owned by Hyman and his family, will work with the larger firm. Cost savings of £4 million per year are expected.
Subject to shareholder approval, the deal will complete in March. MedicX’s chairman Helen Mahy will join the PHP board.
Shares in PHP fell 2.55p to 112.65p; shares in MedicX rose 8.75p to 86.35p.
Numis and Evercore are among a long list of advisers working on the deal.
