In a dramatic turn of events that could redefine the U.K.’s real estate investment landscape, Primary Health Properties PLC (PHP) has tabled a £1.5 billion ($2 billion) rival bid to acquire Assura PLC, a move that would cement its place among London’s largest real estate investment trusts (REITs). If completed, the deal would form the eighth-largest REIT on the London Stock Exchange.
A Tempting Offer for Assura Shareholders
PHP, which trades on the FTSE 250 index, has proposed a compelling package: 9.08 pence per share in cash, financed through fresh debt, alongside 0.3848 new PHP shares for each Assura share held. This offer reflects a 23.5% premium over Assura’s closing price on February 13, just before Assura entered talks with private equity titans Kohlberg Kravis Roberts & Co. (KKR) and Stonepeak Partners.
Despite PHP’s bold move, its bid undercuts the £1.6 billion offer that KKR and Stonepeak put forth in March, which Assura tentatively accepted. However, PHP argues its proposal delivers long-term value, as Assura shareholders would retain a 48% stake in the combined entity.
The Strategic Vision Behind the Bid
PHP is banking on the future of primary healthcare real estate, an industry poised for explosive growth as both the U.K. and Irish governments pivot toward primary care-led healthcare reforms. “The demand for modern medical facilities is surging, driven by policy shifts emphasizing primary care,” PHP stated.
