Top investors in GP surgery firm Assura oppose £1.7bn bid from US private equity giant KKR
Top ten investors Quilter Cheviot and Schroders, which own around 6 per cent and 5 per cent of shares in the NHS landlord respectively, favour a deal with London-listed rival Primary Health Properties (PHP) over US buyout giant KKR.
Allianz, Gravis, Baillie Gifford and Columbia Threadneedle have also leant their support to PHP's bid.
Shareholders argued that KKR's proposal undervalues Assura, which owns GP surgeries, hospitals and hospices across the UK.
A deal with KKR and its partner Stonepeak would see buildings leased to the NHS fall into the hands of overseas owners.
But a takeover by PHP would retain the properties under the ownership of a London-listed business.
Assura this week said it would weigh up an improved bid from PHP, despite having backed KKR's £1.7billion offer last week.
Marcus Phayre-Mudge, manager of Columbia Threadneedle's TR Property Investment Trust, said: 'The KKR bid simply doesn't offer a premium significant enough to justify walking away from this long-term opportunity.
'That's why we strongly support the PHP-Assura merger and encourage other shareholders to do the same.'
A Gravis fund manager said PHP's offer was a 'superior choice for long-term investors'. The KKR bid 'risks crystallising value at what may be a cyclical low', they added.
Baillie Gifford investment manager Jon Stewart said the KKR deal was not 'in shareholders' best interests' and 'undervalues Assura's long-term growth potential'.
KKR's 'best and final' bid values the company at 52.1p per share, although that includes already declared dividends. Without those, the offer is worth 50.42p, analysts said.
Most recently, PHP offered £1.68billion to buy Assura but argued last week that its cash and stock bid is worth more as the value is based on share prices. Assura shares slid 0.1 per cent, or 0.05p, to 50.1p.
City exodus goes on
Direct Line and Ashtead have moved a step closer to joining the exodus from the London stock market.
The £3.7billion takeover of insurer Direct Line by Aviva is set to complete next month after talks with the competition watchdog.
Aviva said it is pressing ahead with plans for a court to sanction the deal on July 1. This would see the insurer swallowed up by its larger rival and leave the market.
Equipment rental firm Ashtead said it is on course to switch its main stock market listing to New York in early 2026.
In the past month, drug maker Indivior and fintech firm Wise said they would switch their main listing to New York.
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