Primary Health Properties has made a £1.5bn takeover proposal to listed peer Assura.
PHP’s indicative cash and share proposal would give Assura shareholders 0.3848 new PHP shares and 9.08p for each Assura share.
That valuation would mark a premium of 23.5% to Assura’s closing share price of 37.4p on 13 February, the last business day before the offer period.
PHP said the deal will create the eighth largest UK listed REIT, with a combined £6bn portfolio, “benefiting from increased public markets presence, greater index weighting and improved investor flows”.
The company added that it will fund the cash portion of the deal through new debt and is in talks with “a number of highly reputable lenders”.
“The future outlook for primary care real estate is positively compelling at a time that both the UK and Irish governments look to reform their healthcare systems using primary care as the foundation,” PHP said.
“The combined group would be extremely well placed to work with and alongside government to deliver its plans, allowing both sets of shareholders to share in future growth.”
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