(Reuters) -Assura said on Monday it would consider a 1.61 billion pound ($2.1 billion) offer from U.S. private equity group KKR and Stonepeak Partners, pushing shares of the British healthcare real estate investment trust up 14%.
Assura’s shares jumped to about 46.5 pence, still just over half of their peak price of 88 pence in 2020 and below the latest offer of 49.4 pence per share.
The company said it had decided to engage in discussions with the consortium and allow it to complete a limited period of confirmatory due diligence.
It added that it “would be minded” to recommend any final offer made on those terms.
Assura has rejected four previous indicative, non-binding proposals from a separate consortium of KKR and pension fund Universities Superannuation Scheme (USS), the last of which proposed 48 pence per share in February.
Monday’s offer from KKR and New York-headquartered investment firm Stonepeak is at a 31.9% premium to the closing share price on February 13, a day before the KKR-USS proposal was made, and a 21.3% premium to Friday’s close.
Panmure Liberum analysts said in a note that the updated bid did not materially change their view that the amounts in question are insufficient to compensate equity holders for giving up a company with long-term growth prospects.
As of September, Assura ran more than 600 properties with an investment value of about 3.2 billion pounds, counting Britain’s National Health Service among its customers.
Assura also said on Monday that it rejected a non-binding, all-share merger proposal from Primary Health Properties that valued Assura shares at 43 pence each.
It said the possible cash offer from KKR and Stonepeak was more attractive, adding that PHP has until April 7 to make a firm offer under British takeover rules.
In a separate statement, PHP said there was considerable merit in working with Assura to determine if an offer can be made on terms attractive to both sets of shareholders.
($1 = 0.7747 pounds)
(Reporting by Chandini Monnappa, Pushkala Aripaka and Radhika Anilkumar in Bengaluru; Editing by Mrigank Dhaniwala and Joe Bavier, Kirsten Donovan)
