(Alliance News) - Assura PLC said on Friday it is reviewing an offer from Primary Health Properties PLC, which turned up the heat in the bidding war over the care property investor and developer.
The Altrincham, England-based care property investor and developer advised its shareholders to take no action, in the meantime.
This comes shortly after Primary Health Properties on Friday revised up its offer for Assura.
Under the terms of the new offer, Assura shareholders would receive 12.5 pence in cash and 0.3769 new Primary Health Properties shares, the London-based healthcare facility investor said.
Based on the Primary Health Properties closing share price of 99.5p on Thursday, the fresh offer implies a total value of 51.7 pence for each Assura share, including the Assura dividends of 1.68p, valuing Assura at about GBP1.68 billion.
Shares in Assura were up 1.3% at 49.50p in London on Friday afternoon. In Johannesburg, they rose 2.0% to ZAR11.83.
The latest offer tops the 46.2p Primary Health Properties made early in April, and was also an improvement from the 43p for Assura early in March.
The revised offer raises the stakes as it is 4.7% higher than 49.4p recommended cash offer by Assura from Sana Bidco Ltd, owned by Kohlberg Kravis Roberts & Co Partners LLP and Stonepeak Partners (UK) LLP.
Assura early last month formally recommended the offer from the US private equity consortium, while it rejected the 46.2p offer from Primary Health Properties.
The new Primary Health Properties offer represents a premium of 38% to Assura's closing share price of 37.4 pence on February 13, the last day before Assura said it had received an unsolicited offer from the KKR-led consortium.
Assura said early this month it had obtained permission to extend the deadline for posting a document over its proposed offer from the US private equity consortium to May 21 from Wednesday last week.
If the new Primary Health Properties bid succeeds, Assura shareholders will hold about 48% in the combined entity.
Primary Health Properties said on Friday maintained that the combination between the two was "compelling", creating an entity with a combined USD6 billion portfolio of long-leased, sustainable infrastructure assets principally let to government tenants and leading UK healthcare providers.
"The PHP board believes the strategic rationale and financial terms of the proposed combination of the UK's two largest healthcare focused listed REITs are compelling, with the potential to create significant long-term value for both PHP shareholders and Assura shareholders, and in excess of the cash offer price from the consortium," Primary Health Properties Chair Harry Hyman said.
Primary Health Properties shares were up 0.3% to 99.25p on Friday in London. They were down 0.4% in Johannesburg at ZAR23.80.
By Artwell Dlamini, Alliance News reporter
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Primary Health (PHP)
Assura (AGR)
