Primary Health Properties (LON:PHP) has announced its intention to acquire Assura plc in a deal that would value Assura at £1.5bn and create one of Britain’s most significant healthcare property portfolios.
Primary Health Properties share rose 1.4% while Assura added 0.5%.
Primary Health Properties has proposed a combination by offering Assura shareholders 0.3848 new Primary Health Properties shares and 9.08 pence in cash for each Assura share held.
Primary Health Properties has confirmed that a mix-and-match facility would be available, affording Assura shareholders the flexibility to adjust the proportions of shares and cash they receive.
Additionally, Assura shareholders would retain their entitlement to the forthcoming quarterly dividend of 0.84 pence per share, scheduled for payment on 9 April 2025.
The deal, based on PHP’s closing share prices of 94.35 pence on 2 April 2025, values Assura’s shares at 46.2 pence and an overall valuation of approximately £1.5 billion.
This represents a premium of 23.5% to Assura’s closing share price of 37.4 pence on 13 February 2025, the last business day before Assura’s offer period commenced.
Upon completion of the combination, Assura shareholders would hold approximately 48 per cent of the combined group’s issued share capital, securing substantial representation in the newly enlarged entity.
The combination would establish a UK REIT of significant scale—indeed, the eighth largest UK listed REIT.
The enlarged group would boast a combined £6 billion portfolio of long-leased, sustainable infrastructure assets. These properties are predominantly let to government tenants and leading UK healthcare providers, creating a robust foundation of income security, longevity and diversity across property types, geographical locations and rent review structures.
Primary Health Properties has a track record of creating synergies through acquisitions and is planning to implement that experience to the same effect again.