LONDON: Private equity firms KKR and Stonepeak have increased their cash offer for Assura plc, a UK-based healthcare property company, in a bid to outcompete a rival takeover attempt by Primary Health Properties (PHP).
The consortium, operating through newly formed Sana Bidco Limited, announced Wednesday its “best and final” cash offer of 50.42 pence per share, valuing Assura at approximately £1.7 billion ($2.2 billion). Including previously declared dividends, the total value per share rises to 52.1 pence—a 0.5% premium over PHP’s competing offer based on recent share prices.
The bid marks an escalation in a monthslong battle for control of Assura, which owns and operates medical facilities across the UK, many leased to the National Health Service (NHS). The original offer, announced April 9, was structured as a court-approved scheme of arrangement but has since been switched to a conventional takeover offer to expedite the process.
“After nearly a year of engagement, this is our best and final offer,” said Andrew Furze, managing director at KKR. He emphasized the “lower risk” and “higher value” of the all-cash proposal compared to PHP’s mixed cash-and-stock bid.
Stonepeak’s Nikolaus Woloszczuk added that taking Assura private would provide “long-term capital” for upgrading NHS infrastructure without requiring asset sales.
The offer represents a 39.2% premium over Assura’s share price before the bid period began in February. Jefferies, advising Bidco, confirmed financing is secured.
Assura’s board has recommended the offer, with key regulatory approvals already obtained from China, Israel and South Korea. The consortium expects remaining clearances by late June.
The takeover requires acceptance by shareholders owning more than 50% of Assura’s shares. Directors, holding 0.1% of shares, have pledged support.
PHP, which made its rival bid May 16, has not yet responded. Assura postponed a shareholder vote earlier this month to evaluate PHP’s proposal.