KKR advocates for Assura to withdraw from PHP agreement amidst ongoing bidding competition
In a dramatic turn of events, Primary Health Properties (PHP) has won the bidding war against KKR for healthcare real estate investor Assura. The deal, valued at £1.79 billion, is now unconditional after securing acceptances from shareholders representing 62.93% of Assura's share capital [1][3][4].
The news comes after Assura's board recommended PHP's raised offer on June 23, rejecting KKR's offer on July 15 [3]. PHP's acceptance threshold of 50% of voting rights in Assura has been met, and all conditions for the offer are satisfied. The offer remains open for further acceptances, and PHP plans to request Assura's delisting from the London Stock Exchange and Johannesburg Stock Exchange once it holds 75% or more of voting rights [3].
However, the UK Competition and Markets Authority (CMA) is still investigating the proposed merger between Assura and PHP due to the deal being between two major owners and operators of primary care and community health facilities in the UK [5]. No recent specific updates are mentioned in the available search results, but the deal's progress suggests that any regulatory concerns, including the CMA investigation, have either been resolved or are no longer blocking the transaction [1][3][4].
Private equity giant KKR, along with its investment vehicle Bidco (which also includes Stonepeak), has been pushing for Assura to drop an already recommended takeover offer from Primary Health Properties (PHP) [2]. Bidco argues that the CMA would not investigate its proposed takeover [5].
Assura's shares tumbled below 96p at the end of July [1], and Bidco's "Best and Final Increased Cash Offer" is priced at 50.42p per share [2]. According to Bidco, many investors involved in the merger arbitrage activity were not protected against risk and likely to sell PHP shares once they receive them, potentially adding further pressure onto PHP's share price [2].
PHP pledged to lower Assura's acceptance condition of the offer and to accelerate its quarterly dividend in October [6]. In response, Bidco criticized PHP's claim about the drop in its share price, stating it was due to temporary merger arbitrage activity [6].
Despite the progress made, Oli Creasey, head of property research at Quilter Cheviot, warns that the saga is nearing its conclusion but isn't done just yet [1]. The deal still faces the CMA's investigation, and analysts warn that there is one final twist left in the bidding war [1].
[1] The Guardian [2] Sky News [3] Primary Health Properties Press Release [4] Assura Press Release [5] Competition and Markets Authority Website [6] The Telegraph
- In the midst of the ongoing bidding war, PHP's planned quarterly dividend acceleration and lowered acceptance condition for its offer to Assura investors might influence more shareholders to accept the offer, potentially shifting the finance landscape of the property markets and business sectors.
- PHP, after meeting the 50% acceptance threshold of voting rights in Assura, is planning to request delisting from the London Stock Exchange and Johannesburg Stock Exchange once it holds 75%, signifying a significant shift in the ownership of primary care and community health facilities in the UK property markets and business sectors.
- As the UK Competition and Markets Authority (CMA) continues its investigation into the proposed merger between Assura and PHP, uncertainty lingers over the final outcome of the bidding war, with analysts predicting a potential final twist in the battle for control of these major UK healthcare real estate owners and operators.
