UK’s Assura refuses $2 billion buyout bid from KKR, pension fund

Pushkara Alipaka and Yadalisa Shabon

(Reuters) – Assura, a UK healthcare property developer, has rejected a £1.56 billion ($2 billion) purchase bid from KKR and Pension Fund University’s retirement pension plan, according to the US-based private equity group said Monday.

Assura’s shares jumped from almost 18% to 46p, but in 2020 it was just over half its peak price of 88p.

KKR said it made four suggestive, non-binding proposals to Asella. Its latest was 48p per share, a premium of 28.2% of Astera’s closing price on February 13th, but was rejected by the UK company’s board of directors.

“KKR is considering whether there is any benefit to continuing to engage with the board,” the US Group said in a statement.

USS, which formed a joint venture with Astera last year, said in another statement it would not make an offer to Astera as part of the consortium or elsewhere.

It was not clear whether KKR was considering an independent offer. He declined to comment further.

Some of Assura’s past bids will be made on its own by KKR, and future attempts will likely be independent attempts as USS is supported, a situation-savvy source told Reuters .

Astera declined to comment on the development. The company was subjected to assets last year to strengthen its balance sheet.

As of September, it operates over 600 properties with an investment value of around £3.2 billion, and counts UK national health services as its client.

“(Assura) is well managed and has many attributes of high quality portfolios and obvious appeal to bidders,” Shore Capital analyst Andrew Saunders said in a memo.

The UK trading work was featured last year as cheaper valuations and lower or stable interest rates made it easier to finance your shopping. A Deutsche Numis poll showed that private equity companies are hoping to increase their trading activities in 2025.

Under the UK acquisition rules, KKR and USS must offer to aselra or leave until March 14th.

($1 = 0.7940 pounds)

(Reporting by Pushkara Alipaka and Yadalisa Sabo of Bengaluru, edited by Rashmi Aich and Emelia Site-Matarise)