KKR and Stonepeak launch £1.6bn bid to take Assura private via scheme of arrangement

KKR and Stonepeak Partners have jointly launched a recommended all-cash acquisition of Assura plc, a FTSE 250-listed real estate investment trust (REIT) specialising in healthcare infrastructure across the UK and Ireland. The £1.6 billion transaction will be executed through Sana Bidco Limited, a newly formed company indirectly owned by funds advised by the two private equity firms. The acquisition is structured as a scheme of arrangement under Part 26 of the UK Companies Act 2006.

Assura shareholders are set to receive 49.4 pence per share, including 48.56 pence in cash and a 0.84 pence quarterly dividend declared in February 2025. The offer price matches Assura’s EPRA Net Tangible Assets (NTA) per share as of 30 September 2024 and represents a 31.9 percent premium to the share price on 13 February 2025, the last trading day before the offer period commenced.

The deal values Assura’s fully diluted equity at £1.608 billion, significantly above its prior market capitalisation of £1.2 billion, offering an attractive value proposition to shareholders while signalling increasing investor appetite for infrastructure-backed REITs with long-duration income.

What does the acquisition mean for Assura shareholders?

For shareholders, the deal delivers a compelling premium against recent trading levels. The offer price also closely tracks Assura’s intrinsic asset value, providing a liquidity event at a point where listed REITs have broadly underperformed the wider market. Assura’s shares have faced persistent pressure from macroeconomic challenges, including the Bank of England’s interest rate hikes and general weakness in the UK real estate sector.

With the offer now public, Assura’s share price is expected to trade tightly around the 49.4 pence offer value, capping any short-term upside. Investors who remain until the completion of the deal can realise the full cash value, while those seeking quicker liquidity might exit in the open market, should prices align closely with the offer terms.

The deal also offers certainty of value in a challenging economic environment and removes exposure to further market volatility. Investors on the South African register will receive their entitlement in South African Rand, with currency conversion details to be included in the Scheme Document.

What is the stock sentiment and investment outlook for Assura plc?

At the time of the offer announcement, Assura was trading at 37.4 pence, having suffered from broader sectoral decline. The acquisition offer at 49.4 pence per share represents not only a 31.9 percent premium to the undisturbed price but also a 33.9 percent premium to its one-month average and a 30.6 percent premium to its three-month average.

Market sentiment turned sharply positive following the announcement, with the stock quickly rising to reflect the implied offer value. For long-term investors, many of whom have experienced low returns over the past two years, the deal provides a strategic exit point.

Should investors buy, sell, or hold Assura plc shares now?

Buy: Not advised at current levels unless a pricing mismatch or arbitrage window exists, as most of the upside is already priced in post-announcement.

Sell: Investors seeking early liquidity or those concerned about deal risk could exit in the open market if prices hover close to the offer value.

Hold: The optimal strategy for most shareholders. With unanimous board support and no competing bids announced, holding through to deal closure—expected in Q3 2025—ensures receipt of the full 49.4 pence per share.

The takeover also sends positive signals across the healthcare infrastructure and REIT sectors. It may trigger valuation re-ratings among peers such as Primary Health Properties plc, as the transaction reflects renewed private equity interest in defensive, income-generating infrastructure assets.

How does this deal fit into the long-term healthcare infrastructure landscape?

KKR and Stonepeak’s move to acquire Assura reflects wider macroeconomic and policy-driven interest in community-based healthcare infrastructure. With aging populations, growing pressure on NHS services, and rising demand for accessible healthcare closer to patients’ homes, modern facilities are now a national priority.

Assura’s portfolio includes over 600 primary care buildings, with a valuation exceeding £3.1 billion. These assets serve more than six million patients and cover both public and private sector tenants, including GPs, NHS Trusts, and operators in the Republic of Ireland.

The company’s capital-intensive growth model, which historically required regular equity issuance and asset recycling, stands to benefit from the long-term, flexible capital that private ownership offers. KKR and Stonepeak are expected to enable Assura to expand development activities without the limitations of quarterly financial performance targets.

Who are the firms behind the offer, and why are they interested?

KKR, with over $638 billion in assets under management, brings a long-standing presence in UK infrastructure investing. Since its first UK investment in 1996, the firm has deployed more than £20 billion across sectors including water, telecommunications, renewables, and logistics. Its open-ended core infrastructure strategy aligns well with Assura’s stable, inflation-linked income stream.

Stonepeak, managing $72 billion globally, is the largest independent infrastructure specialist worldwide. With a focus on social infrastructure, it has made more than 70 investments across 60+ countries. Its Global Core strategy, which targets stable assets in developed markets, also aligns well with Assura’s operational profile.

From their respective London offices, both KKR and Stonepeak intend to retain and support Assura’s current management, accelerate asset development, and deepen stakeholder engagement within NHS systems and healthcare providers.

What are the next steps and regulatory milestones?

The acquisition will require shareholder approval via both a Court Meeting and a General Meeting, with at least 75 percent of votes cast in favour for the Scheme to become effective. Irrevocable undertakings from Assura’s directors—covering 4.6 million shares—have already been secured.

The Scheme Document, which will include a 31 March 2025 portfolio valuation, is expected to be released within 28 days of the announcement. If approved, the deal is on track to close in early Q3 2025. Any unexpected dividends declared before this date may lead Bidco to reduce the cash consideration by an equivalent amount, though shareholders will retain those distributions.

What are the broader investment implications for the UK property sector?

The transaction marks another chapter in the increasing trend of UK infrastructure and social assets moving into private ownership, particularly those with long-term public service contracts. With real estate under pressure, private equity is targeting defensive assets with durable income and low default risk.

Assura’s certification as a B Corporation—the first FTSE 250 company to earn that status—has likely enhanced its profile among ESG-focused institutional investors. The deal sends a strong signal that private capital is willing to support and scale impact-driven real estate platforms, especially those linked to national priorities like healthcare access and sustainability.

With public funding constraints and real estate public markets remaining volatile, more healthcare REITs and infrastructure developers could be potential targets for similar take-private transactions in 2025 and beyond.