KKR's bid for NHS landlord exposes City's vulnerability

Private equity's battle to aquire Assura is the latest example of companies snapping up discounts on the UK stock exchange

- Barney Macintyre

Another day, another British company getting plucked off the London Stock Exchange (LSE) by private equity. KKR's bid to acquire the NHS landlord, Assura, for £1.7bn looks as if it will finally get the go-ahead, despite opposition from big shareholders.

The heated battle for Assura, which owns hundreds of GP surgeries, follows the takeover of British cybersecurity group Darktrace by US-based Thoma Bravo in 2024 and the delisting of Hargreaves Lansdown by a consortium of private equity groups in March. Both deals fuelled concerns that companies on the LSE are being chronically undervalued.

Property, including the NHS, is attracting interest. "US private equity is making a move on UK property assets," said Oliver Creasey, an analyst at Quilter Cheviot, a shareholder opposing KKR's bid. "They clearly see some value there. I would not be surprised if that interest continues until share prices rerate generally."