KKR and Stonepeak’s $2.1bn all-cash offer for UK-listed healthcare REIT Assura has drawn a counterbid from Primary Health Properties (PHP), intensifying the competition for control of the FTSE 250 company.

PHP’s alternative proposal values Assura at approximately £1.68bn ($2.1bn), surpassing the KKR and Stonepeak offer by 4.7%. The bid consists of 0.3769 new PHP shares and 12.5p in cash for each Assura share, equating to a value of 51.7p per share.

While KKR and Stonepeak’s cash offer provided a clear exit for shareholders, PHP’s “retain-and-ride” approach offers long-term exposure to the primary-care real estate sector – an area it believes is well positioned for growth. Chairman Harry Hyman described the market as being at an “inflection point”, driven by stronger rent reviews and more favourable financing conditions. He also pointed to ongoing consolidation in the sector, with scale and cost of capital emerging as key differentiators.

Assura’s board said it is currently evaluating PHP’s bid and will provide an update to shareholders in due course. Shares in Assura rose 3.56% on news of the counteroffer.

The original KKR and Stonepeak deal marked a significant private equity move into UK healthcare property. The emergence of a higher rival bid reflects growing investor confidence in the asset class and could signal further competitive interest ahead.

Source: Reuters

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