PHP ups bid for Assura to £1.79bn in recommended takeover deal

PRIMARY Health Properties (PHP) on Monday raised its offer for a leading UK healthcare real estate investment trust Assura to around £1.79 billion (R43bn), securing backing from Assuras board and paving the way for the creation of a major UK-listed healthcare real estate investment trust (REIT).

- PHILIPPA LARKIN

Under the revised terms, Assura shareholders will receive 0.3865 new PHP shares and 12.5 pence in cash for each Assura share. They will also receive a special dividend of 0.84 pence, bringing the total implied value to 53.3 pence per share based on PHP’s closing price on June 20. Including previously declared dividends, the offer rises to 55 pence per share.

The increased offer represents a 5.8% premium over a rival bid from Sana BidCom a consortium led by private equity firms KKR and Stonepeak, which had proposed 50.42 pence per Assura share in cash.

Shares in PHP, which are secondary listed on the JSE, fell 5% in morning trade on Monday to R24.70, while Assura, which is also secondary listed on the JSE, shares soared 4.95% to R12.29.