The battle for Assura, a British healthcare landlord, has taken an interesting turn as private equity giant KKR and infrastructure investor Stonepeak Partners have upped their bid to acquire the company. The new offer of 49.4 pence per share represents a 32% premium to Assura’s share price before the takeover interest was made public. This latest bid, which is a 2.9% increase from KKR’s previous offer, has caught the attention of Assura’s board, who have expressed willingness to recommend the offer to shareholders if it becomes firm.
Assura, which has a portfolio of around 600 healthcare properties in the UK, had previously rejected multiple bids from KKR before considering the latest proposal. The company also turned down a merger proposal from Primary Health Properties, citing the cash offer from KKR and Stonepeak as more attractive and less risky for shareholders.
The market reaction to the new bid has been mixed, with Assura’s shares initially surging before settling back down. Some analysts believe that the current offer may not be enough to fully satisfy Assura’s shareholders, as the bid premium is below the average for UK takeovers in 2024. However, the potential acquisition by KKR and Stonepeak is part of a larger trend of private equity firms shrinking the UK stock market by acquiring companies at discounted prices.
Overall, the bidding war for Assura highlights the competitive nature of the private equity industry and the strategic moves being made to expand portfolios and assets under management. Stay tuned as the deadline for Primary Health Properties to counteroffer approaches, and the fate of Assura hangs in the balance.
