Assura Group (LSE:AGR) shares jumped after the company said the board "would be minded" to accept a £1.6 billion takeover bid from KKR and Stonepeak Partners.
Having rejected several previous offers, directors of the UK healthcare property investor said the consortium has now upped its bid to a potential cash offer of 49.4p per share.
Shareholders would retain the declared quarterly dividend of 0.84p per share that is due to be paid on 9 April and receive cash consideration of 48.56p per share.
Assura said the offer represents a 2.9% increase on KKR's previous 48p proposal and represents 100% of net tangible asset value at the end of September.
Following consultation with advisers and major shareholders, the board said it has now indicated to the consortium that it would be minded to recommend such an offer to shareholders and will now hold talks with the consortium to allow a limited period of due diligence.
The shares jumped 14% to 46.59p on Monday morning.
** Update: Adds share price **