8th Aug 2025 17:49
(Alliance News) - Primary Health Properties PLC on Friday applauded peer Assura PLC for re-affirming the fresh PHP offer, with Assura snubbing Kohlberg Kravis Robert & Co Inc again before the key deadline next week.
On Friday, Assura said its directors continued to back the PHP offer, despite efforts by KKR to convince it otherwise.
This came after KKR reported on Friday it was still trying to persuade Assura's board to recommend its "superior" takeover offer over the one from PHP.
Assura directors on June 23 recommended the new raised PHP offer, and the Assura board rejected the KKR-led offer on July 15.
KKR is a US private equity firm that is leading a bidding consortium, called Sana Bidco Ltd, that also includes property investor Stonepeak Partners LP.
Assura shareholders have until Tuesday next week to decide whether they accept the PHP offer.
KKR on Friday said that over the last few days the Bidco has engaged with the Assura board, requesting it to change its recommendation from the revised PHP offer to Bidco's best and final cash offer.
The KKR consortium presented the "best and final" offer to Assura shareholders of 50.42p in cash on June 11. In addition, Assura shareholders would retain the quarterly interim dividend of 0.84p announced in February and the quarterly interim dividend of 0.84p declared in May, making for a total offer of 52.1p.
Since the Assura board's recommendation of the PHP offer, which remains unchanged, a number of factors have changed or been raised that KKR argued reduces the attractiveness of the PHP offer.
On price alone, KKR said Bidco's offer is 1.1% higher than the PHP one, following a decline in the share prices of both Assura and PHP in the period following the announcement of the Assura's recommendation of the PHP offer.
"Given the material gap between the offers, Bidco continues to urge Assura's shareholders to accept its best and final increased cash offer and to take no action with regards to the revised PHP offer," KKR said.
As at 1800 BST on Thursday, Bidco's takeover offer for Assura has 1.57% acceptances. It also hold 5.05% stake in Assura, meaning 6.62% total support.
In a separate filing, PHP said it has received 3.68% acceptances of its own offer.
Under the terms of the increased PHP offer, Assura shareholders will receive 0.3865 of a new PHP share and 12.5 pence in cash. Also, Assura shareholders are entitled to receive or retain a quarterly dividend of 0.84p per Assura share paid on April 1, and a quarterly dividend of 0.84p per Assura share paid on July 9.
KKR on Friday said its offer is "superior" as it delivers a higher monetary value, full certainty, and risk-free value in the form of cash, no execution risk, and no competition or antitrust risk.
The UK Competition & Markets Authority on Friday said it has served an initial enforcement order on PHP's offer for Assura. The CMA's initial enforcement order follows a comment period held between July 4 and 18.
Shares in Assura were up 0.6% at 49.28p in London, but were flat at ZAR12.30 in Johannesburg.
PHP shares were up 0.3% at 94.79p in London, and they rose 1.7% to ZAR22.69 in Johannesburg.
By Artwell Dlamini, Alliance News senior reporter South Africa
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