11th Jun 2025 16:17
(Alliance News) - Primary Health Properties PLC on Wednesday said it "strongly disagrees" with Assura PLC's decision to recommend a rival takeover bid from a consortium led by private equity firm Kohlberg Kravis Robert & Co Inc, or KKR, and property investor Stonepeak Partners LP, and is considering its options.
The statement follows earlier news on Wednesday that Assura has accepted a best and final all-cash offer from Sana Bidco Ltd – a vehicle backed by KKR and Stonepeak – worth 50.42 pence per share, or 52.1p when including declared dividends.
That values Assura's equity at approximately GBP1.70 billion, surpassing Primary Health Properties' part-cash, part-share offer of around 51.7 pence per share. In May, PHP had revised its proposal to include 12.5 pence in cash and 0.3769 of a new PHP share for each Assura share, valuing the company at 51.7p per share, or GBP1.68 billion in total.
Assura said KKR's proposal offered greater certainty and less risk, citing concerns about PHP's higher leverage, refinancing obligations, and execution risks related to planned asset disposals.
Assura also highlighted strategic divergence between the two suitors, particularly over exposure to inflation-linked leases and investment in private healthcare facilities.
PHP, a London-based healthcare facility investor, said the UK government's three-year spending plan announced on Wednesday, which includes a 3% real-terms rise to NHS day-to-day budgets, supports growth for both companies. It added that it views the coming 10-year plan for healthcare reform as a further tailwind for primary care-focused firms.
"The board of PHP strongly disagrees with the Assura board's assessment," the company said, promising to respond in detail and urging Assura shareholders to take no action in the meantime.
On Wednesday afternoon, Assura shares were up 2.1% at 49.94p in London and 2.0% at ZAR11.82 in Johannesburg. Shares in Primary Health Properties were up 3.0% at 102.93p in London and 2.5% higher at ZAR24.59 in Johannesburg.
By Eva Castanedo, Alliance News reporter
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