NHS landlord Assura agrees £1.6bn takeover by investment consortium

GP surgeries owner Assura has accepted a £1.6billion takeover offer from investment irms Kohlberg Kravis Roberts (KKR) and Stonepeak Partners.

The NHS landlord, which owns and manages over 600 properties in the UK, has been the subject of a bidding war.

The latest proposal values each Assura share at 49.4 pence, a 32 per cent premium to the company’s closing share price on the last business day prior to the offer period starting.

Assura’s investors will receive a 0.84p per share dividend and 48.56p in cash for every share they hold.

Bosses at the Altrincham-based firm said they would be ‘minded to recommend’ the KKR and Stonepeak deal to shareholders should they make a concrete bid on the same financial terms.

Assura has also turned down a lower offer of £1.5billion from real estate investment trust Primary Health Properties (PHP).

Ed Smith, chairman of Assura, said: ‘The cash offer from KKR and Stonepeak allows Assura shareholders to realise their investment at an attractive price.

‘With the benefit of the additional capital that KKR and Stonepeak can provide, Assura will be able to continue to support the NHS and other healthcare providers in delivering improved health outcomes.’

KKR and Stonepeak note that Assura’s portfolio aligns with the UK Government’s plans to transfer more care into primary and community settings.

It also thinks the group’s current public listing and capital structure limit its ability to grow and that private ownership would ‘accelerate the delivery’ of new healthcare buildings.

Tara Davies, co-head of European infrastructure at KKR, said: ‘Assura is a market leader in healthcare infrastructure, and we share the company’s objective of building best-in-class facilities to support the delivery of national healthcare objectives. 

‘Delivering this effectively requires significant investment in Assura’s platform, a long-term perspective and the ability to fund Assura’s growth through long-term and flexible capital.’

Assura shares were the FTSE 250 Index’s top performer by late Wednesday morning after rising 5.1 per cent to 47.5p.

The prospective Assura takeover comes amidst a frenzy of acquisitions involving foreign predators snapping up London-listed businesses at discounted valuations.

Among the firms to fall into overseas hands in recent years include supermarket chain Morrisons, cybersecurity giant Darktrace, and packaging group DS Smith.

KKR has bought infrastructure investors John Laing and Smart Metering Systems, as well as satellite software company IQGeo Group.