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Assura reopens talks with PHP, adjourns KKR takeover meeting

News

Tim Burke

23 May 2025

Investment/finance

Last month Assura recommended a £1.6bn cash offer from KKR and Stonepeak, but earlier this month PHP made its own offer of 0.3769 new shares and 12.5 pence in cash for each Assura share.

In a stock market update today, Assura said: “Having carefully considered the PHP offer with its advisers and consulted with Assura’s major shareholders, Assura has engaged in further discussions with PHP and commenced due diligence in relation to PHP to determine whether to recommend the PHP offer to Assura shareholders.”

Assura has also adjourned a court meeting and general meeting over the KKR deal set for 5 June.

Mark Davies, chief executive of PHP, had previously said: “This is an important moment for primary care real estate. Property valuations are improving and rental growth prospects are strongly underpinned by high demand for space at a time the government is committed to a shift from secondary to primary care and the 10-year plan, to be published this summer, is something to be excited about as an investor in PHP.

“Our offer… enables the shareholders in PHP and Assura to benefit from the rising demand for primary care. The enhanced financial strength of a larger REIT, which is committed to maintaining a strong investment grade credit rating, and is expected to have a reduced cost of capital and annualised cost synergies of approximately £9m.”

KKR and Stonepeak have maintained that their recommended cash offer is a “superior proposal”.

“In relation to the PHP offer, [KKR and Stonepeak’s] bidco notes numerous critical issues which it believes significantly increase the financial risk profile of the combined entity, potentially harm the future returns and growth prospects for both Assura and PHP shareholders and lead to the combined business being highly capital constrained,” they said earlier.

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Healthcare real estate investor Assura has kicked off new talks with suitor Primary Health Properties over a £1.68bn takeover, threatening an already-recommended offer from private equity firms KKR and Stonepeak. Last month Assura recommended a £1.6bn cash offer from KKR and Stonepeak, but earlier this month PHP made its own offer of 0.3769 new shares and 12.5 pence in cash for each Assura share. In a stock market update today, Assura said: “Having carefully considered the PHP offer with its advisers and consulted with Assura’s major shareholders, Assura has engaged in further discussions with PHP and commenced due diligence in relation to PHP to determine whether to recommend the PHP offer to Assura shareholders.” Assura has also adjourned a court meeting and general meeting over the KKR deal set for 5 June. Mark Davies, chief executive of PHP, had previously said: “This is an important moment for primary care real estate. Property valuations are improving and rental growth prospects are strongly underpinned by high demand for space at a time the government is committed to a shift from secondary to primary care and the 10-year plan, to be published this summer, is something to be excited about as an investor in PHP. “Our offer… enables the shareholders in PHP and Assura to benefit from the rising demand for primary care. The enhanced financial strength of a larger REIT, which is committed to maintaining a strong investment grade credit rating, and is expected to have a reduced cost of capital and annualised cost synergies of approximately £9m.” KKR and Stonepeak have maintained that their recommended cash offer is a “superior proposal”. “In relation to the PHP offer, [KKR and Stonepeak’s] bidco notes numerous critical issues which it believes significantly increase the financial risk profile of the combined entity, potentially harm the future returns and growth prospects for both Assura and PHP shareholders and lead to the combined business being highly capital constrained,” they said earlier. Photo © Stuart Bailey/Pixabay