- Offer raised to 49.4p per share
- Price equates to 100% of tangible net assets
- Rival cash and shares offer rejected
Shareholders in healthcare facilities provider Assura (AGR), of which the author is one, received the news today the company had agreed a final all-cash offer from KKR and Stonepeak worth £1.6 billion or 49.4p per share.
The offer represents 100% of Assura’s EPRA net tangible asset value per share as of 30 September 2024 and a 32% premium to the undisturbed closing price of 37.4p on 13 February.
Assura shares, which were sold off during the recent market turmoil, gained 2.5p or 5.6% to 47.7p.
PUTTING THE DEAL TO BED
The deal comprises of 48.56p per share in cash plus the 0.84p per share dividend which was paid to investors today.
In an overview of the transaction, the bidders said that against the backdrop of shifting demographic and structural trends Assura had ‘a crucial and growing role to play in the provision of critical healthcare infrastructure in the UK and Ireland over the long term’.
KKR and Stonepeak also cited the Assura’s ‘highly-attractive portfolio of assets’ and experienced management team, but said the company’s capital-intensive model would be better suited to private ownership which would allow it to ‘accelerate its investment strategy’.
Today’s deal puts to rest any hopes rival trust Primary Health Properties (PHP) had of securing a deal with its cash and shares offer based on an adjusted asset value basis, despite – as analysts at Panmure Liberum point out – the potential for cost and operating synergies and the lower cost of capital resulting from scaling up the business.
Disclaimer: The author (Ian Conway) owns shares in Assura.
