UK’s Assura in talks with KKR consortium for £1.6bn offer

British healthcare real-estate investment trust (Reit) Assura said on Monday it would probably consider a £1.61bn (R38bn) offer from KKR and Stonepeak Partners, after rejecting four previous offers from another KKR-led consortium.

In February, KKR and pension fund Universities Superannuation Scheme (USS) said they had made four indicative, nonbinding proposals to Assura, the last of which was at 48p per share, which was rejected by the British company’s board.

Monday’s offer of 49.4p per share from KKR and investment firm Stonepeak is at a 31.9% premium to the closing share price on February 13 when the previous offer was made and is at a 21.3% premium to Friday’s close.

About the latest offer made by KKR and Stonepeak, Assura said the board had decided to engage in discussions with the consortium and to allow it to complete a limited period of confirmatory due diligence.

In February, when Assura rejected the offer from KKR and USS, a source familiar with the situation had said that any future attempt would probably be an independent one as USS backed out.

Assura could delist from the JSE if the offer is accepted, just months after its November listing.

Nedbank senior equity research analyst Ridwaan Loonat said: “While the revised pricing is attractive, it remains uncertain if shareholders will accept it. Given that it’s a cash offer, however, it could see Assura delist if accepted.”

Following the announcement, the group’s share price surged, eventually ending Monday up 6.54% to R10.92.

Assura has been operating since 2003 and by end-September it  managed a portfolio of 625 properties, generating an annualised rent roll of £179m.

Its profit for the interim period to September 30 increased to £77.1m, from a loss of £17.8m in the previous year.

The company’s secondary listing on the JSE was intended to expand its shareholder base by attracting investors from SA.

With Noxolo Majavu

majavun@businesslive.co.za