UK’s Assura rejects buyout bid from US group, pension fund

British healthcare property developer Assura has rejected a £1.56bn acquisition bid from KKR and pension fund Universities Superannuation Scheme (USS), the US-based private equity group said on Monday.

Assura’s shares jumped nearly 18% to 46p, still just more than half of their peak price of 88p in 2020.

KKR said it had made four indicative, non-binding proposals to Assura, the latest of which was at 48p per share, a 28.2% premium to Assura’s closing price on February 13, but was rejected by the British company’s board.

“KKR is considering whether there is any merit in continuing to try to engage with the board,” the US group said in a statement.

USS, which had established a joint venture with Assura last year, said in a separate statement that it did not intend to make an offer for Assura, as part of the consortium or otherwise.

It was not clear whether KKR was considering an independent offer. It declined to comment further.

Some of the past bids for Assura were made by KKR on its own and any future attempt would likely be an independent one as USS backed out, a source familiar with the situation said. 

Assura declined to comment on the developments. The company undertook asset disposals last year to bolster its balance sheet.

It was running more than 600 properties with an investment value of about £3.2bn since September and counts Britain’s state-backed National Health Service as a customer.

“(Assura) is well-managed, has a high quality portfolio and many attributes of obvious attraction to the bidder,” Shore Capital analyst Andrew Saunders said in a note.

Deal-making activity in Britain picked up last year, as cheaper valuations and falling or stable interest rates made financing easier for buyouts. A Deutsche Numis poll showed that private equity firms expect a rise in deal activity in 2025.

Under British takeover rules, KKR and USS have until March 14 to make a firm offer for Assura or walk away.

Reuters