Assura plc has unanimously rejected a takeover proposal from private equity firm KKR, declaring that the offer “materially undervalued” the healthcare property company and its future prospects.
The proposal, which was submitted to Assura’s board on 13 February, outlined a non-binding cash offer of 48 pence per share for the company. KKR has not submitted any revised offers since the rejection.
KKR has already submitted four offers, and one would think they’ll be back again before long with a refreshed bid.
Assura shares are down heavily over the past two years and trade at just 12x earnings with a 7% yield. There’s still plenty of wiggle room for KKR to snap up Assura at bargain prices.
In a related development, USS Investment Management Limited (USSIM), acting on behalf of the Universities Superannuation Scheme, announced it would not pursue an offer for Assura, either independently or as part of a consortium with KKR. This decision is binding except under specific circumstances detailed in USSIM’s separate announcement.