Shares in private equity group KKR & Co were off over 7% today after it sweetened a multi-billion dollar deal for British healthcare property developer Assura.
Try Try Again
KKR has followed the old Scottish adage of “if you don’t succeed once, then try, try again,” by making a fifth attempt to buy Assura since last September. All four previous bids have been turned down.
In a statement today Assura said it is now considering an indicative, non-binding proposal from KKR and Stonepeak Partners of 49.4p per share. That is a premium of about a third to Assura’s closing share price on February 13th and values the company at around $2.08billion. It is also higher than the last offer KKR made at 48p per share. The Assura board said it is likely to recommend the offer to shareholders and will engage in discussions with KKR and Stonepeak.
U.K. Real Estate in Play
Assura, running more than 600 properties with an investment value of about £3.2 billion as of last September, counts the UK’s state-backed and under-pressure National Health Service as a customer. Analysts said that the higher price means that KKR is very keen to get the deal over the line. Significantly it did not include involvement from pension fund USS Investment Management which joined KKR in making the February bid.
Despite the uncertainty over the deal shown by KKR investors today, a successful conclusion might see more moves from private equity firms on the downtrodden U.K. real estate sector.
Is KKR a Good Stock to Buy Now?
On TipRanks, KKR has a Strong Buy consensus based on 11 Buy and 3 Hold ratings. Its highest target price is $214. KKR stock’s consensus price target is $173.77 implying an 63.06% upside.
Questions or Comments about the article? Write to editor@tipranks.com