The potential bidder is valuing NHP at a slight premium to its current share price, a company statement says. "The board announces that it has received an approach for the property assets of the company that would comprise [its] entire operations...following the intended disposal of Highfield Care," it said. NHP announced in May that it planned to dispose of Highfield Care, its elderly care operating division.
In response to the news, Investec downgraded the stock to 'hold' from 'buy' and advised investors to take profits. The firm noted that, "given discussions are only at a preliminary stage, and the execution risks are high any upside looks limited and a bid at a slight premium to 239 pence is attractive". It advised shareholders to take profits. But Investec complained that the statement was rather confusing. It was unclear whether the offer was for NHP as it stands or after the disposal of its elderly care unit Highfield.
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