Published by Global Banking & Finance Review®
Posted on April 3, 2025
2 min readLast updated: January 24, 2026
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Assura, a UK healthcare REIT, faces a $1.96 billion bid from PHP amid a competitive takeover battle involving KKR and Stonepeak.
By Shashwat Awasthi and Aby Jose Koilparambil
(Reuters) - British healthcare REIT Assura has received a 1.5 billion pound ($1.96 billion) indicative cash-and-stock bid from Primary Health Properties, above an earlier offer it had rejected, but below a U.S. consortium's all-cash bid.
This is the seventh proposal in as many weeks fielded by Assura, which runs more than 600 healthcare properties with an investment value of more than 3 billion pounds, and counts Britain's state-backed National Health Service as a customer.
Thursday's bid from rival REIT PHP, worth 46.2 pence per share, comes weeks after Assura rejected its 43 pence a share proposal in favour of 49.4 pence per share proposed by a consortium of KKR and Stonepeak Partners.
Under the latest proposal, Assura's shareholders will get 0.3848 new PHP shares, 9.08 pence in cash, retain a quarterly dividend of 0.84 pence per share, and own 48% of the combined group.
Assura shareholders will also have an option to "mix and match" varying proportions in which they receive new PHP shares and cash.
"The bid by PHP looks like a calculated risk," said Oli Creasey, head of property research at Quilter Cheviot.
Creasey said several Assura shareholders had been frustrated that the board engaged with an all-cash private equity bid which would result in it de-listing.
"The pricing is not competitive with the KKR bid at face value, but the company (PHP) may be hopeful that enough shareholders are open to accepting a slightly lower price in exchange for the share capital remaining in a listed vehicle."
PHP's proposed price represents a 23.5% premium to Assura's closing share price on February 13, the day before Assura disclosed its first takeover approach. PHP shares were up 1.5%, while Assura's edged up 0.4% in Thursday's morning session.
KKR and Stonepeak have until April 11 to make a firm offer. Assura said last month it may recommend a final offer made on the consortium's latest proposed terms.
KKR and Stonepeak did not immediately respond to a request for comment on PHP's latest proposal.
($1 = 0.7639 pounds)
(Reporting by Aby Jose Koilparambil and Shashwat Awasthi in Bengaluru; Editing by Janane Venkatraman, Rashmi Aich and Tomasz Janowski)
The main topic is the bidding war for UK healthcare REIT Assura, involving PHP and a consortium led by KKR and Stonepeak.
Primary Health Properties and a consortium of KKR and Stonepeak Partners are the key bidders for Assura.
The bids highlight the competitive interest in Assura's healthcare properties, valued over 3 billion pounds.
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