KKR Is Fighting Private Equity’s Battle for the UK Stock Market
It would be highly unusual, and symbolic, for the US buyout firm to lose a UK deal to a stock-based bid from a London-listed company. But it might just happen.
Market impact.
Photographer: Chris Ratcliffe/BloombergKKR & Co.’s recent deal for a struggling UK real estate firm was initially remarkable for landing in the midst of the American tariff turmoil. Now facing a domestic counterbid, this US-led buyout has become an emotive symbol of the London stock market’s capitulation to private equity and foreign takeovers. The odds may be stacked against the English interloper. But the situation has the feeling of an Agincourt moment for the UK market.
Assura Plc accepted KKR’s £1.6 billion ($2.2 billion) offer in April in a textbook UK public-to-private transaction. The property company’s long-term growth potential is plain to see, given it specializes in hospitals and surgeries. The stock had nevertheless traded at a discount to net asset value (NAV), making it vulnerable to predators. That was heightened after management overstretched to buy a hospital portfolio last August and chose to pay partly in shares, making Assura a target for short-selling hedge funds.