Assura tipped to accept beefed-up £1.6bn offer
The Altrincham-based healthcare investor has told KKR and Stonepeak Partners it would be minded to recommend shareholders accept the deal, following an increased indicative offer.
The board of Assura told the Stock Market today that it has received an indicative, non-binding proposal from the partners regarding a possible cash offer for the entire issued and to be issued share capital of Assura, at 49.4 pence per share.
This reflects a 2.9% increase on KKR’s previous indicative, non-binding proposal of 48 pence per share.
Assura said that KKR and Stonepeak, “both long-term infrastructure investors,” recognise that “Assura’s leading platform and portfolio are important social infrastructure assets for the UK” adding that the consortium has indicated its intention to deploy further capital to the portfolio to continue its growth.
Assura’s board has indicated to the bidding consortium that, should a firm offer be made on the financial terms set out above, it would be minded to recommend such an offer to Assura shareholders.
This firmly puts the US bidders in the driving seat. A rival indicative bid had been received from Primary Health Properties, but this has been rejected.
Assura said “the board has carefully considered the PHP proposal with its advisers and concluded that the possible cash offer of 49.4 pence in cash 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.”
The healthcare investor and developer last year brought in Steven Noble as chief investment officer, a newly created role to help drive the firm’s short- and long-term growth.
Earlier this month, Assura announced the disposal of seven assets for a combined £64m, taking it to £200m of sales since the start of its financial year. The group has been refocusing, acquiring a private hospital portfolio for £500m in August last year, with tenants including Nuffield, Spire and Circle.
For its part, private equity giant KKR has this month invested in build-to-rent residential in the region, buying the Slate Yard complex in Salford for around £100m.
