Primary Health Properties in £2.3bn merger with MedicX Fund

Primary Health Properties on Thursday said it was merging with MedicX Fund in a £2.3bn deal.

The two firms said the deal would create a combined portfolio of 479 surgeries. It valed MedicX shares at 88.7p each or £393m in total.

Primary Health shareholders would own 69% of the enlarged company.

“The two companies' respective portfolios are highly complementary and the combined business will represent a stronger platform with increased scale and financial resources for further investment into its NHS-supporting estate,” Primary Health said.

“Combining the two businesses is expected to create significant value for both MedicX and PHP shareholders through operational and investment management synergies, leading to a reduced EPRA Cost Ratio, as well as financing savings over the medium term.”

"The enlarged group will be more able to meet the increasing demand for high-quality primary healthcare facilities across the UK and the Republic of Ireland thereby supporting doctors, alleviating pressure on hospital departments and ultimately aiding the welfare of patients."