The takeover battle for NHS landlord Assura has intensified as US private equity giant KKR urged the firm to abandon its support for rival bidder PHP. The Competition and Markets Authority (CMA) has simultaneously stepped in with enforcement action to scrutinise the deal.
A consortium led by KKR has called on Assura's board to switch its recommendation away from healthcare property firm Primary Health Properties' £1.79 billion offer. The American firm argues its lower cash bid of £1.7 billion now represents better value for shareholders.
Competition watchdog intervenes
The CMA served an initial enforcement order blocking PHP from fully integrating Assura whilst it examines the proposed takeover. The competition watchdog launched a consultation last month into PHP's agreed bid, marking the first step towards a formal investigation.
Assura owns more than 600 buildings across the UK, including doctors' surgeries, with a property portfolio valued at approximately £3.1 billion. The company employs around 80 staff members.
Bidding war escalates
PHP secured backing from Assura's board in June for its £1.79 billion offer following a protracted bidding war with KKR, which has partnered with US investor Stonepeak. PHP had increased its offer from an initial £1.68 billion bid in May after being outbid by the KKR consortium's £1.7 billion move.
The KKR consortium revealed on Friday it had held recent discussions with Assura's board to promote its bid. The group claims "a number of factors have changed" which make PHP's offer less attractive to shareholders.
Cash offer advantage claimed
KKR argues its cash offer is now 1.1 per cent higher than PHP's proposal due to declining share prices of both PHP and Assura in recent weeks. The consortium also maintains its bid carries "no competition or antitrust risk" compared to PHP's offer.
The American-led group claims it can provide "the strongest ongoing stewardship for Assura, its team and all stakeholders including investing in NHS infrastructure". The battle for control of one of Britain's largest NHS property landlords continues as regulators examine the competitive implications.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
