One of the NHS\u2019s biggest landlords has bowed to shareholder pressure and spurned an offer from an American private equity firm in favour of merging with one of its peers.<\/p>\n
Assura, which owns hundreds of doctors\u2019 surgeries and healthcare centres around the UK, is now recommending shareholders vote in favour of a tie-up with Primary Health Properties<\/a> having previously told them to back a \u00a31.64 billion sale to KKR and Stonepeak Partners instead.<\/p>\n PHP\u2019s cash-and-shares proposal had initially valued Assura at close to \u00a31.8 billion, but reflecting a 4\u00bcp, or 4.2 per cent, fall in PHP shares to 99\u00bcp yesterday, the current value of its offer is just below \u00a31.7 billion.<\/p>\n While KKR and Stonepeak are offering all cash, PHP is paying only \u00a3460 million or so in cash with the rest in PHP shares, which would give Assura shareholders 48 per cent of the combined group.<\/p>\n \u2022 Business live: follow for the latest news on markets, companies and the economy<\/b><\/a><\/p>\n Assura shares were broadly unchanged at 50p, just below the two offers on the table. KKR and Stonepeak have bid 50.42p for each Assura share and PHP\u2019s proposal currently equates to 51.68p. Both offers are slightly above Assura\u2019s last reported net asset value of 50.4p per share, the most recent estimation of what its portfolio was worth.<\/p>\n Assura, based in Altrincham, Greater Manchester, was set up in 2003 and now owns more than 600 healthcare buildings worth \u00a33.2 billion. PHP owns 516 surgeries, dental practices and medical centres in England, Scotland and Ireland. Between them, they generated rental income of \u00a3333 million last year, close to 85 per cent of which is ultimately underpinned by the UK and Irish governments.<\/p>\n