Priory Group plans £1.3bn market float

The Priory chain of clinics, well known for treating celebrities such as Kate Moss and Robbie Williams, is planning to float on the stock market for an expected price of around 1.3 billion pounds.

The Priory, which plans to appoint banks to see it through the floatation, said that the proceeds would be used to slash its debt pile and to fund further expansion plans.

The rehab clinic chain’s largest shareholder, the Royal bank of Scotland, said it would erase almost half of company’s 1 billion pounds of debt in return for another 30 per cent of the business.

The move is expected to see royal bank of Scotland boost its shareholding from 45 per cent to 75 per cent.

Conservative party chairman Lord Ashcroft, who owns 34 per cent of the Priory, is expected to receive 100 million pounds windfall. He had acquired the stake two years back for 44 million pounds.

The company, which runs more than 50 hospitals, schools as well as care homes across Britain, was established in 1980.