PHP urges Assura shareholders to take no action on KKR offer

(Sharecast News) - The battle to take over Assura looks far from over after Primary Health Properties said it was considering its options as its bid for the medical property owner was trumped by private equity giant KKR on Wednesday. KKR and bid partner Stonepeak upped their offer for the National Health Service landlord on Wednesday to £1.7bn and garnered the support of Assura's board in the process.

PHP said its board "strongly disagrees with the Assura board's assessment" and would set out its detailed views in due course, adding that a government spending revue announcement - also published after the KKR deal became public -was "positive for both the PHP and Assura businesses".

The government set out plans to lift health day-to-day spending by 3% a year, in real terms, equivalent to approximately £29bn a year of extra cash, PHP said.

"Furthermore, the board of PHP expects the upcoming 10-year plan on healthcare to be equally positive and to provide a boost to primary care as the government shifts toward community, primary and preventive care in the future."

"PHP is considering its options and a further announcement will be made when appropriate. Assura shareholders are strongly advised to take no action in response to the announcement by Bidco (KKR) in the meantime."

Reporting by Frank Prenesti for Sharecast.com