Assura Agrees to $2.06 Billion Takeover by KKR-Stonepeak
(Reuters) - British medical property owner REIT Assura has agreed to a 1.61 billion pound ($2.06 billion) takeover bid from KKR and Stonepeak Partners, after rejecting a lower cash-and-stock proposal from peer Primary Health Properties.
Assura joins a growing list of UK companies bought out and taken private by overseas private equity firms or investment companies, attracted by cheap valuations.
KKR and Stonepeak understand that Assura's capital-intensive strategy can be more effectively supported through private ownership, enabling sustained capital investments without the need for asset sales, the statement said.
The U.S.-based private equity firms have offered to buy Assura for 49.4 pence-per-share. The bid was the fifth involving KKR and is at a 33.5% premium to the closing price on February 13, a day before the first bid was disclosed.
Under the terms of the deal, shareholders will get 48.56 pence in cash for each share held and a quarterly interim dividend of 0.84 pence that was due to be paid on April 9.
Assura, which counts the National Health Service among its clients, said it intends to recommend that the shareholders vote in favour of the deal.
"The cash offer from KKR and Stonepeak offers an attractive opportunity for Assura shareholders to crystallise value immediately," CEO Jonathan Murphy said.
Earlier on Wednesday, Assura rejected peer PHP's proposal. At 46.2 pence per share, it was lower than the KKR-Stonepeak proposal, although it included an option to "mix and match" varying proportions of shares and cash.
PHP, which has until May 5 to make a firm offer, declined to comment.
Assura's shares rose as much as 5.6% to 47.7 pence in early trade on Wednesday and have surged about 29% since the start of the offer period.
($1 = 0.7799 pounds)
(Reporting by Aby Jose Koilparambil, Raechel Thankam Job and Chandini Monnappa in Bengaluru; Editing by Nivedita Bhattacharjee, Mrigank Dhaniwala and Barbara Lewis)
