Assura board rejects four takeover offers from private equity giant KKR
Altrincham-based healthcare property group, Assura, has received a preliminary, unsolicited approach from American private equity giant Kohlberg Kravis Roberts & Co. Partners (KKR) and the pension fund Universities Superannuation Scheme (USS).
On Friday the board said it was reviewing the proposal with its adviser Lazards and said it remains confident in the long-term prospects of the company and is strongly positioned to create value for shareholders.
This morning KKR said it has submitted four indicative non-binding proposals to the Assura board at 48p per share.
At close of market on Friday Assura shares were 39p.
In a statement “KKR believes that the terms of the latest proposal offer a highly attractive opportunity for Assura shareholders to realise their investment in cash at a significant premium to prevailing market prices.. KKR is considering whether there is any merit in continuing to try and engage with the board.”
That final bid values Assura at £1,562 million and KKR said this represents a 28.2% premium to the closing share price of 37.4 pence on 13 February 2025; and 30.1% premium to the volume weighted average Assura share price of 36.9 pence over the last month; and a 26.9% premium to the volume weighted average Assura share price of 37.8 pence over the last 3 months.
KKR said in a statement to the market this morning shared by Assua that this bid follows “significant work over the last 6 months which resulted in three previous written proposals made to the board of Assura, each of which was rejected unanimously by the Board.”
KKR also revealed that on Saturday (15th February 2025), the Assura board rejected the latest proposal too.
This morning (17 February) USS said it would not be making a further offer as part of any consortium: “USSIM confirms it does not intend to make an offer for Assura, as part of the Consortium or otherwise.”
In January Assura said it could potentially raise £248m through disposals and achieve its target to hit its goal of net debt to EBITDA below nine times and a loan to value below 45% over the next 18 months.
Assura’s portfolio now stands at 608 properties with an annualised rent roll of £176.9m (September 2024: £179.1m).
In a third quarter trading update to December 31, 2024, it revealed it has, so far raised, £48.4m in disposals, with talks under way for another £110m, and a £90m further pipeline identified for potential disposal.
Chief executive, Jonathan Murphy, said successful rent reviews meant that Assura was well positioned to take advantage of the strong growth in the UK private hospitals market with early discussions under way on several asset enhancement opportunities on existing sites and a growing pipeline of further development opportunities.
The group is currently on site with five developments with a total cost of £44m, with £22m remaining to be spent.
