CELEBRITY rehab clinic group The Priory, which has three operations in Hampshire, could be sold off by its owners.
Royal Bank of Scotland (RBS) is sounding out potential buyers for the firm behind The Priory chain, it has been reported.
Taxpayer-backed RBS, which owns a majority stake in The Priory Group is said to be holding talks with a number of private equity firms over a possible sale.
It’s best known for the 46-patient Priory Hospital in Marchwood, pictured, which treats people with mental health problems, including addiction.
The group also owns Coxlease School in Lyndhurst, a residential facility for youngsters with severe behavioural, emotional and social difficulties that it bought for £16.3m in 2006. It also runs Coxlease Abbeymead in Beaulieu, a specialist emergency placement and assessment unit for young people.
The bank had hoped to realise its investment in The Priory through a stock market flotation, but has shelved the plans after recent turmoil in global equity markets, according to industry reports. It first confirmed aims for an initial public offering in January at a time when stock markets were rallying in a recovery since the financial crisis.
The move was planned to help reduce its debt pile and subsequently help it attract funding for future growth to meet a growing need for independent specialist mental healthcare.
The firm was expected to achieve a valuation of around £1.3 billion on listing.
RBS has reportedly started sale talks after being approached by a number of investors in the past few months.
It is not thought that any formal sale process has started yet.
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