The bidding battle for Assura, the NHS landlord, has escalated as US private equity firm KKR urged the board to accept its offer, while the Competition and Markets Authority (CMA) stepped up its investigation into a rival £1.79bn takeover by Primary Health Properties (PHP).
PHP, which invests in GP practice buildings, has been blocked from fully integrating Assura by the CMA while it examines whether the deal would substantially lessen competition. The watchdog issued an initial enforcement order after launching an investigation last month.
KKR, along with Stonepeak Partners, has lobbied Assura's board to back its £1.696bn cash bid, arguing that changes in share prices make its offer more attractive. However, Assura's board reiterated on Friday that PHP's offer remains in the best interests of shareholders.
Assura, founded in 2003 and listed on the FTSE 250, owns 603 healthcare properties across the UK, including surgeries and hospitals, valued at £3.1bn. Last year, it bought 14 private hospitals in a £500m deal. The company reported a pre-tax profit of £166m for the year, reversing a previous loss.
Analysts remain divided, with Panmure Liberum's Bjorn Zietsman favouring PHP's offer for creating a market leader, while Shore Capital's Andrew Saunders noted PHP is well placed to clear the 50% acceptance threshold by Tuesday's deadline. KKR's bid faces no competition concerns, but some long-term shareholders prefer a listed entity.
