UK healthcare specialist to raise €407m through share issue

UK healthcare developer-investor Assura has announced plans to raise up to £300 mln (€407 mln) through the issue of 600 million shares at a price of 50 pence each.

The offer price represents a premium of 11% to the adjusted EPRA NAV per Assura share of 45 pence at end-March 2015, the company said in a statement.

Shareholders are being offered the opportunity to participate in the offer on the basis of 1 offer share for every five existing ordinary Shares. Investors Liberum Capital and Stifel Nicolaus Europe have already committed to fully underwrite the offer.

The company, a developer and investor in UK primary care premises for the NHS, said it would use around £125 mln of the total proceeds to take advantage of acquisition opportunities and to fund developments, with the remaining equity to be used to reduce borrowings.

The operation is expected to reduce the group’s total debt by £135 mln and result in an overall loan to value ratio of 35%. The share issue is conditional on approval at the General Meeting, which is expected to be held on 12 October 2015.

'Our business is focused on helping the NHS in improving patient care whilst adapting to ever increasing demand from an ageing population and medical progress. Investing in primary care infrastructure is a recognised priority for the NHS and the support from so many institutions in this fund raise sends a clear message that long term investors want to participate in this significant endeavour,' commented Assura's CEO Graham Roberts.