The board of Assura has received a revised indicative proposal from Primary Health Properties (PHP).

If an offer is made and accepted, the merged group would be the eighth-largest UK listed REIT.

The proposal consists of both cash and shares, and would see PHP acquire the entire issued share capital of Assura.

Each Assura shareholder would receive 9.08p in cash, alongside 0.3848 PHP shares, per every Assura share they hold.

PHP will also create a ‘mix and match facility’, enabling Assura shareholders to vary the proportions in which they received cash and shares.

This implies an initial value of 46.2p per share, valuing Assura’s entire issued and to be issued share capital at £1.5bn.

PHP stated this is ‘a premium of 23.5% to Assura’s closing share price of 37.4 pence on 13 February 2025’, which was the final day before the offer period began.

This is an improvement on PHPs former non-binding proposal which had an implied offer of 43 pence per share.

Shareholders will retain their 0.84p per share dividend due to be paid on 9 April, with an additional dividend of no more than 0.84p per share expected to be paid on 9 July, and further quarterly dividends on Assura’s usual timetable at a level specified by PHP until an offer becomes unconditional.

Among the benefits listed by PHP include the scale of the proposed new enterprise which would boast a £6bn portfolio of long-leased, sustainable infrastructure assets which are primarily let to government tenants and UK providers.

Also included are the ability to benefit from an improving rental growth outlook, cost and operating synergies, and improved access to debt and equity.

PHP’s bid deadline has been extended. It has until 5 May to make a firm offer.

Assura has also received an indicative non-binding proposal from a consortium featuring KKR and Stonepeak Partners for a £1.6bn takeover bid.