M&A News: KKR Makes Final $2.3B Bid in Battle for U.K. Healthcare Group Assura

Shares in U.S. private equity giant KKR & Co (KKR) rose today as it made a new $2.3 billion takeover bid for British healthcare property developer Assura.

Assura said today it had reached an agreement on the “best and final bid” from KKR and Stonepeak Partners.

Rival Beating Offer

That was after sparking a bidding war back in the Spring when it agreed to be bought by KKR for $2.16 billion. This led to healthcare investor Primary Health Properties coming in with a higher bid of around $2.2 billion and even calling its offer “compelling.”

This led to KKR’s new rival-busting offer today, which Assura said it would recommend to its shareholders.

Assura Chair Ed Smith said the deal followed a careful and thorough evaluation of both offers. “KKR and Stonepeak are highly experienced investors in healthcare and infrastructure,” he said.

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.

It counts the UK’s state-backed and under-pressure National Health Service as a customer.

U.K. In Play

Assura said that the deal would be beneficial to the NHS and UK healthcare sectors by accelerating the building of new healthcare facilities and improving existing ones.

Analysts said that more U.K. stocks, not just in the downtrodden real estate sector, could be in the sights of U.S.-based buyers. Other recent deals include semiconductor group Qualcomm snapping up British chip designer Alphawave for $2.4 billion.

“The UK stock market continues to be a hive of activity regarding takeovers as predators take advantage of cheap valuations. Some situations have entered a bidding war, while others have collapsed, providing plenty of drama for investors,” said Russ Mould, AJ Bell investment director.

Is KKR a Good Stock to Buy Now?

On TipRanks, KKR has a Strong Buy consensus based on 12 Buy ratings. Its highest price target is $189. KKR stock’s consensus price target is $142.50 implying a 14.90% upside.

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