KKR and Stonepeak Submit Final $2.3 Billion Offer in Competitive Bid for UK’s Assura

Private equity firms KKR and Stonepeak Partners have raised their offer for Assura PLC to nearly £1.7 billion ($2.3 billion) in an all-cash proposal, positioning it as their “best and final” bid. The revised offer of 52.1 pence per share, inclusive of dividends, marginally exceeds the 51.7 pence bid made last month by rival Primary Health Properties (PHP), and represents a 39% premium to Assura’s share price on February 13, the day before the initial KKR-Stonepeak approach.

Assura is a leading UK-based healthcare real estate investment trust (REIT), managing over 600 properties with a combined investment value exceeding £3 billion. The company plays a critical role in the country’s healthcare infrastructure, with many of its properties leased to the National Health Service (NHS). Its strategic position within the healthcare ecosystem makes it a valuable and stable long-term investment opportunity.

KKR emphasized the simplicity and security of its proposal, contrasting it with PHP’s part-cash, part-stock bid. “This is lower risk than other alternatives and requires no divestment,” said Andrew Furze, Managing Director at KKR. The all-cash structure may appeal to shareholders seeking immediate value without the uncertainties tied to stock performance or integration risk.

Since the first bid was disclosed in February, Assura’s shares have gained 32%, lifting its market capitalization to approximately £1.6 billion as of Tuesday. The company had initially supported KKR-Stonepeak’s earlier offer, but PHP’s higher bid in May forced a renewed review by the board.

The acquisition battle highlights the growing trend of foreign private equity firms targeting UK-listed companies, many of which are perceived as undervalued due to market volatility and economic headwinds. Real estate and infrastructure assets, particularly in essential sectors such as healthcare, are drawing heightened interest for their resilient cash flows and long-term growth potential.

With this final offer on the table, attention now turns to Assura’s board and shareholders, who must weigh the benefits of immediate cash returns against potential longer-term gains under PHP’s alternative structure. The outcome will be closely watched as a bellwether for further private equity activity in the UK market.