KKR-backed acquisition vehicel reiterates its bid for Assura
By Josh White
Date: Monday 19 May 2025
(Sharecast News) - An acquisition vehicle by KKR and Stonepeak reiterated its offer for Assura on Monday, dismissing the proposed alternative share-and-cash offer from Primary Health Properties (PHP), arguing it posed material financial and strategic risks.
In a statement responding to PHP's 16 May proposal, Bidco reiterated that its own recommended all-cash offer, announced on 9 April, was the only proposal that would allow Assura shareholders to fully realise their investment while ensuring long-term growth through fresh capital deployment into UK healthcare infrastructure.
Bidco criticised PHP's offer for significantly increasing leverage to 55% loan-to-value, above sector norms and both companies' target ranges.
It warned that PHP's proposed asset disposals to reduce debt could result in value destruction and potentially erase the EPS gains it claimed.
Bidco also flagged heightened regulatory risk from potential Competition and Markets Authority scrutiny and expressed concern that PHP's funding plan could raise borrowing costs, jeopardise investment grade ratings, and severely constrain future growth.
Bidco concluded that its own proposal avoided those risks, and would provide Assura with stable, long-term private capital to support expansion without asset sales or deleveraging pressure.
At 0837 BST, shares in Assura were down 0.32% at 49,46p.
Reporting by Josh White for Sharecast.com.
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