Primary Health Properties is continuing to push to acquire listed peer Assura, despite the target’s board having recommended that its shareholders accept a £1.7bn takeover offer from private equity groups KKR and Stonepeak.
Earlier this week KKR and Stonepeak raised their offer to 50.42p in cash per share, in addition to which Assura shareholders will retain two quarterly dividends.
In recommending that offer, Assura said PHP’s earlier approach “presents material risks and downsides to Assura shareholders which undermine the potential benefits of the proposed combination under the PHP offer”.
Nikolaus Woloszczuk, senior managing director at Stonepeak, added: “We firmly believe Assura has a brighter future in the private markets.”
In a stock exchange notice today, however, PHP said it “continues to firmly believe that a combination of Assura and PHP represents a highly compelling proposition which will deliver significant strategic, operational and financial benefits for both sets of shareholders”.
PHP added that it will not reduce the value of its offer if the Assura board declares a special dividend conditional on the offer becoming unconditional, and that it will lower the acceptance condition of the offer to more than 50% of voting rights, matching that of the KKR and Stonepeak offer.
PHP said: “The board believes that with further due diligence and consideration, and factoring in the special dividend, the board of Assura should recommend the combination to shareholders.”
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