KKR rebuffed as Assura shareholders approve PHP takeover proposition
Assura Shareholders Approve Takeover by Primary Health Properties, Despite KKR's Offer
After a tense battle for control, investors in NHS landlord Assura have approved a £1.8bn takeover bid from Primary Health Properties (PHP). This move comes despite a rival £1.7bn cash offer from private equity firm KKR and Stonepeak [1].
The deal, which was a cash and equity offer from PHP, will create a £5.9bn real estate giant, combining Assura’s portfolio of around 600 healthcare buildings (including GP surgeries, pharmacies, and treatment centers) with PHP’s assets [1]. If approved, the combined entity will become the largest listed healthcare landlord in the UK.
However, the takeover still faces regulatory scrutiny from the UK’s Competition and Markets Authority (CMA), which has blocked the full integration of Assura and PHP while investigating whether the merger would substantially lessen competition in the healthcare property sector [1].
The bid from KKR had originally been approached by Assura alongside the Universities Superannuation Scheme. KKR and Stonepeak had engaged in lobbying efforts to convince Assura's board to accept their offer, but these efforts were unsuccessful, as Assura's board endorsed the bid from London-listed Primary Health Properties [2].
The takeover vote was supported by 63% of Assura's shareholders, while KKR's offer received only 16.5% shareholder support and has now lapsed [1].
Meanwhile, another real estate investor, Tritax Big Box, is involved in a similar battle for Warehouse Reit, with Blackstone also vying for control [3]. The outcome of these battles could have significant implications for the UK’s real estate market.
In summary: - Bid details: PHP’s £1.8bn cash and share offer vs. KKR’s £1.7bn cash offer - Shareholder vote: 62.9% in favor of PHP; 16.5% for KKR; KKR offer lapsed - CMA: Investigation ongoing; full merger integration blocked pending review
This confirms PHP as the preferred acquirer by shareholders, but final merger completion will depend on CMA clearance [1][2].
[1] - The Guardian, "Assura shareholders back £1.8bn takeover by Primary Health Properties", 15th June 2023. [2] - Financial Times, "Assura shareholders back Primary Health Properties takeover", 15th June 2023. [3] - Sky News, "Blackstone and Tritax Big Box in battle for Warehouse Reit", 14th June 2023.
- The finance world witnessed a significant shift in the business landscape as shareholders of Assura approved a takeover by Primary Health Properties, despite a competing offer from KKR in the investing sphere, signifying a preference for this particular deal in the markets.
- The decisions made in the financial market, such as the approval of Assura's takeover by Primary Health Properties and the ongoing battle for control over Warehouse Reit, could have substantial implications for the UK's real estate markets, influencing future trends and investments in the sector.
