London-listed Assura, a UK-based diversified healthcare REIT, is minded to recommend to shareholders the latest bid for its shares of 49.4 pence per share from a consortium comprising KKR and US-based infrastructure investor, Stonepeak Partners. The bid values Assura at £1.607bn.
It is the latest in a series of bids for the healthcare REIT.
In February, KKR had teamed up with the UK Universities Superannuation Scheme in a bid for Assura at 48 pence per share. USS, which set up an 80:20 JV with Assura in 2024, then proceeded to drop out of any further bid.
In March, London-listed Primary Health Properties (PHP), an investor in modern healthcare properties in the UK and Ireland, made a preliminary approach in relation to a possible all-share offer for Assura.
The implied value of the PHP proposal based on PHP’s share price of 90.1 pence as at February 13, 2025 is 43 pence per Assura share. The board concluded that the possible cash offer is more attractive than the PHP proposal as it provides shareholders with the opportunity to receive cash consideration at a significantly higher value per share than the proposal from PHP and with materially less risk. It has rejected the PHP Proposal.
Premium cash bid
The latest 49.4 pence bid represents a 31.9% premium to the closing share price of 37.4 pence on February 13, 2025, and a 2.9% increase on KKR’s previous indicative, non-binding proposal.
The current consortium of KKR and Stonepeak, both long-term infrastructure investors has indicated its intention to deploy further capital to the portfolio to continue its growth.
Lazard is lead financial adviser to Assura. Barclays and Stifel are joint corporate brokers and financial advisers.
Deutsche Numis was financial adviser and corporate broker to PHP.
