Doctors’ surgeries owner rejects £1.56bn takeover approach

London-listed property and GP surgery owner Assura has rejected a fourth takeover proposal from US private equity giant Kohlberg Kravis Roberts, which valued the firm at £1.56 billion (Anthony Devlin/PA) - (PA Archive)

London-listed property and GP surgery owner Assura has rejected a fourth takeover proposal from US private equity giant Kohlberg Kravis Roberts (KKR), which valued the firm at £1.56 billion.

Assura – which owns more than 600 buildings, including doctors’ surgeries – turned down the latest approach from KKR, worth 48p a share, on Saturday.

It comes after Assura confirmed on Friday that it had received an approach from KKR, which had teamed up with the Universities Superannuation Scheme (USS) for the possible bid.

Shares in Assura jumped by 13% in Monday morning trading, having already risen on Friday on the bid interest.

But the USS said on Monday that it would not be making a bid for Assura following the last rejection.

KKR is considering whether there is any merit in continuing to try and engage with the board

Kohlberg Kravis Roberts

KKR said its latest approach “follows significant work over the last six months which resulted in three previous written proposals made to the board of Assura, each of which was rejected unanimously by the board”, adding that the fourth bid was also rebuffed.

KKR said the approach was a “highly attractive opportunity for Assura shareholders to realise their investment in cash at a significant premium to prevailing market prices”.

“KKR is considering whether there is any merit in continuing to try and engage with the board,” it said.

KKR now has until 5pm on March 14 to announce plans to make a firm bid or walk away under UK City takeover rules.

In May last year, Assura and USS agreed to invest £250 million into a joint venture to support investment in essential NHS infrastructure.

The 48p-a-share potential bid marks a premium on the 37.4p closing price for the stock on February 13, the day before the latest approach by KKR.

Andrew Saunders, an analyst at Shore Capital, said: “The Assura management believes it can continue to create shareholder value and has therefore rejected 48p.

“In our view, the price looks fair, although we will need to hear details from Assura about how it values the business more highly.”