Assura Group: A New Chapter Ahead with KKR and Stonepeak Partners
In a significant development for the UK healthcare property market, Assura Group (AGR) has announced that it is open to being acquired by a consortium consisting of KKR and Stonepeak Partners. This comes after the board had previously rejected several takeover bids. The consortium’s latest offer values Assura Group at approximately £1.6 billion, with a potential cash offer of 49.4p per share.
Background
Assura Group, a leading investor in UK healthcare property, has seen its share price fluctuate in response to various market conditions and takeover speculation. The company’s portfolio consists of over 3,400 properties, providing essential healthcare facilities to the National Health Service (NHS) and private healthcare providers.
The Offer
The consortium, led by global investment firm KKR and infrastructure investment firm Stonepeak Partners, initially approached Assura Group with a takeover bid in May 2022. The offer was rejected due to concerns over the price and uncertainty surrounding the regulatory approval process. However, the consortium has since returned with a revised offer, which has been met with a more favourable response from the Assura Group board.
Impact on Assura Group
Assura Group shareholders stand to benefit significantly from the proposed acquisition. The cash offer represents a premium of around 37% compared to the closing price before the initial takeover approach was announced. This represents a substantial return for investors, who have seen the share price rise and fall in response to the takeover speculation over the past year.
Impact on the World
The acquisition of Assura Group by KKR and Stonepeak Partners could have far-reaching implications for the UK healthcare property market. The consortium’s investment in Assura Group’s assets could lead to improvements in the quality and availability of healthcare facilities, particularly in areas where they are most needed. The transaction could also provide a catalyst for further investment in the sector, as other investors look to capitalise on the growing demand for healthcare real estate.
Regulatory Approval
The acquisition is subject to regulatory approval from the UK’s Competition and Markets Authority (CMA). The CMA will assess whether the transaction could result in a substantial lessening of competition in the market for healthcare property. If approved, the transaction is expected to complete in the first half of 2023.
Conclusion
Assura Group’s acceptance of the latest takeover bid from KKR and Stonepeak Partners marks a pivotal moment for the UK healthcare property sector. The transaction is expected to bring significant benefits to Assura Group shareholders, as well as potential improvements to the availability and quality of healthcare facilities. However, regulatory approval remains a key hurdle that must be overcome before the acquisition can be completed.
- Assura Group to be acquired by KKR and Stonepeak Partners for £1.6 billion
- Cash offer of 49.4p per share represents a premium of 37% compared to the closing price before the initial approach
- Regulatory approval from the CMA is required before the acquisition can be completed
- Potential benefits for Assura Group shareholders and the UK healthcare property market
