KKR and Stonepeak launch £1.6 billion bid for Assura plc

LONDON: Assura plc announced that it has received an indicative, non-binding cash offer from Kohlberg Kravis Roberts & Co. Partners L.L.P. (KKR) and Stonepeak Partners (UK) LLP for the company’s entire issued and to-be-issued share capital at 49.4 pence per share. The proposed cash offer, referred to as the “Possible Cash Offer,” values Assura at £1,607 million.

Under the proposal, shareholders would retain the previously declared quarterly dividend of 0.84 pence per share set to be paid on April 9, 2025, while receiving 48.56 pence per share in cash at closing. The offer represents a 31.9% premium to Assura’s closing share price on February 13, 2025, and matches 100% of Assura’s Net Tangible Asset Value as of September 30, 2024.

Following deliberations and consultations with advisers and major shareholders, the Assura board expressed preliminary support for the offer and will engage in further discussions with the consortium. Assura emphasized that the consortium’s intention to deploy additional capital for growth aligns with its strategic goals.

Additionally, Assura received a competing, non-binding proposal from Primary Health Properties PLC (PHP) for an all-share combination. However, the board rejected the PHP proposal, stating that the Possible Cash Offer provides a significantly higher value per share and involves less risk.

Both KKR and Stonepeak, as long-term infrastructure investors, highlighted the importance of Assura’s portfolio as a key UK social infrastructure asset, underscoring their commitment to furthering its growth. Discussions and due diligence with the consortium are ongoing.