Assura (AGR) has received an indicative, non-binding proposal from Kohlberg Kravis Roberts & Co. Partners L.L.P. (KKR) and Stonepeak Partners (UK) LLP for the company at 49.4p per share. The deal would value Assura’s equity at £1,607m and represents:
- a 31.9% premium to the closing share price of 37.4 pence on 13 February 2025 being the last business day prior to the announcement made by the company on 14 February 2025;
- a 33.9% premium to the volume weighted average Assura share price of 36.9 pence over the 1 month to 13 February 2025; and
- a 30.6% premium to the volume weighted average Assura share price of 37.8 pence over the 3 months to 13 February 2025.
Assura says that the potential acquirers recognise that Assura’s platform and portfolio are important social infrastructure assets for the UK, and the consortium has indicated its intention to deploy further capital to the portfolio to continue its growth.
Assura’s board minded to recommend such an offer to shareholders
Assura says that, having carefully considered the potential offer with its advisers and consulted with its major shareholders extensively, Assura’s board has indicated to the consortium that, should a firm offer be made on the financial terms indicated, it would be minded to recommend such an offer to Assura shareholders, subject to the agreement of the other terms of the offer. Accordingly, the board has decided to engage in discussions with the consortium in relation to these terms and to allow the consortium to complete a limited period of confirmatory due diligence.
PHP offer less attractive than KKR/Stonepeak offer
Assura has also said that its board has received an indicative, non-binding proposal from Primary Health Properties (PHP) regarding a possible all-share combination of Assura and PHP structured by way of an offer by PHP for Assura at an exchange ratio based on each company’s last reported NTA per share.
Assura says that the implied value of the PHP proposal based on PHP’s share price of 90.1p as at 13 February 2025 is 43p per Assura share. Assura’s board says that, having carefully considered the PHP proposal with its advisers, it has concluded that the KKR/Stonepeak proposal is more attractive than the PHP proposal as it provides shareholders with the opportunity to receive cash consideration at a significantly higher value per share than the proposal from PHP and with materially less risk. As such, Assura’s board has rejected the PHP proposal.
