23rd Jun 2025 09:17
(Alliance News) - Assura PLC said on Monday it recommended the new cash-share offer from peer Primary Health Properties PLC, describing it as "fair and reasonable".
Under the terms of the increased Primary Health Properties offer, Assura shareholders would receive 0.3865 new Primary Health Properties shares and 12.5 pence in cash.
In addition, Assura shareholders would be entitled to receive a special dividend of 0.84p per Assura share.
Based on the Primary Health Properties closing share price of 103.5p on Friday last week, the fresh Primary Health Properties offer implies a total value to be received by Assura shareholders of 53.3p for each Assura share.
This represents a premium of 5.8% to the value of the best and final cash offer of 50.42p per Assura share, made by Sana Bidco Ltd, a consortium made up of Kohlberg Kravis Robert & Co Inc and property investor Stonepeak Partners LP.
In addition, Assura shareholders will be entitled to receive or retain quarterly dividend of 0.84p per Assura share paid on April 1, and quarterly dividend of 0.84p per Assura share due to be paid on July 9.
The revised Primary Health Properties offer, together with the special dividend and the Assura dividends, implies a total value of 55.0p for each Assura share and values Assura at about GBP1.79 billion.
Assura shareholders would hold about 48% of the combined entity, if the deal succeeds.
Assura directors consider the terms of the sweetened offer to be "fair and reasonable", and they intend to recommend unanimously that their shareholders accept the new offer, Primary Health Properties said in a statement on Monday.
On June 13, Primary Health Properties revised terms of its takeover approach.
Primary Health Properties has preciously asked its shareholders to vote on the takeover offer for Assura at a general meeting on July 1. It has also said Assura shareholders have up to August 12 to accept its offer.
Shares in Assura were up 0.8% to 50.40p in London on Monday morning, while they rose 5.0% to ZAR12.29 in Johannesburg.
Primary Health Properties was down 3.1% at 100.26p in London, and it declined 3.7% to ZAR25.03 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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