KKR & Co is approaching a critical juncture in its almost 10-month long takeover pursuit of UK healthcare landlord Assura, with shareholders set to decide by 12 August in whether to accept KKR’s enhanced cash offer or back a rival bid from Primary Healthcare Properties (PHP), according to a report by Bloomberg.
On Friday, Assura reaffirmed its support for PHP’s £2.4bn offer rejecting KKTR’s rival proposal – now made in conjunction with Stonepeak Partners.
This high-stakes showdown highlights broader trends in the UK real estate sector, where private equity has aggressively targeted undervalued landlords amid a challenging market environment. The choice for Assura investors boils down to immediate cash certainty offered by the PE-backed consortium versus a cash-and-share deal from PHP that offers exposure to a recovering property market.
Despite KKR and Stonepeak’s improved offer now pricing at a slight premium following share price declines for both Assura and PHP, management remains steadfast in recommending PHP’s bid. The private equity group has continued efforts to sway the board, arguing their cash proposal offers risk-free value in the current market.
Institutional support for PHP’s offer remains notable, with backing from Baillie Gifford, Aberdeen Group, Schroders, Allianz, and others, who see the sector as having passed the bottom of its cycle and anticipate attractive returns ahead. Yet, shareholder take-up has been slow, with only a small percentage formally accepting either bid as the deadline nears.
