Assura has announced that its board is inclined to support an improved takeover proposal from a consortium led by investment firms KKR and Stonepeak Partners, which has effectively outshined a rival bid from Primary Health Properties. Following this announcement, the shares of Assura, a specialized healthcare property investor and developer based in the UK, experienced a substantial surge of more than 14% in London as reported mid-morning on Monday. The latest proposal from the consortium offers Assura shareholders £0.494 per share, valuing the company at an approximate £1.61 billion.
Notably, this revised offer represents a significant 31.9% premium compared to Assura's closing price of £0.375 as of February 13. Previously, the board at Assura had unanimously dismissed KKR's initial offer of £0.48 per share, indicating a clear strategic pivot towards the more lucrative terms now on the table. In a parallel development, Assura's board acknowledged a competing proposal put forth by Primary Health Properties, which suggests an all-share merger valued at £0.43 per Assura share.
The board of Assura stated that after careful deliberation, they have considered both the enhanced offer from the KKR-Stonepeak consortium and the alternative merger proposal from Primary Health Properties. The board is leaning toward recommending the consortium's bid to shareholders, asserting that it presents a more attractive option. The rationale behind this inclination stems from the fact that the consortium's bid presents an opportunity for shareholders to attain cash consideration at a significantly higher valuation per share compared to the offer from Primary Health Properties while minimizing potential risks associated with the transaction. Assura's board has decided to commence discussions with the consortium, which has been given a limited timeframe for due diligence.
If the deal proposed by KKR-Stonepeak is finalized, Assura shareholders will still benefit from the declared dividend of £0.0084 per share, which is scheduled for payment on April 9, and an additional £0.4856 per share in cash at closing. On the other hand, Primary Health Properties has until the end of the business day on April 7 to either confirm its firm intention to pursue its bid or formally withdraw it from consideration..