US private equity giant KKR has won a takeover battle for NHS landlord Assura after raising its bid to £1.7 billion.
Assura said it had reached an agreement on a “best and final” bid led by Kohlberg Kravis Roberts (KKR) and Stonepeak Partners.
The medical property firm sparked a bidding war when it said it had agreed to be bought by the consortium back in April for a takeover price of £1.61 billion.
But healthcare investor Primary Health Properties (PHP) then swooped in with a higher bid worth £1.68 billion, saying its offer was “compelling”.
Both bidders have upped their offers several times to try and clinch a deal.
Assura owns more than 600 buildings, including doctors’ surgeries, with a portfolio valued at around £3.1 billion. It has about 80 members of staff.
The improved bid from KKR and Stonepeak offers 52.1p for each Assura share – valuing the entire company at about £1.7 billion.
Ed Smith, Assura’s chairman, said the decision followed a “careful and thorough evaluation of both offers”.
“KKR and Stonepeak are highly experienced investors in healthcare and infrastructure and I am confident that with their support, and the additional capital they will provide, Assura will continue to deliver the high-quality healthcare infrastructure our communities need,” he said.
KKR has been under the spotlight recently for pulling out of a possible rescue deal to inject much-needed cash into Thames Water, Britain’s biggest water supplier.
Thames had chosen KKR at the end of March to be its preferred bidder under plans to invest around £4 billion of new equity to help keep the financially stricken company afloat.
But Thames Water said KKR was not “in a position to proceed” with any offer.
