CareTech to be taken over in £870m deal
By Michele Maatouk
Date: Monday 27 Jun 2022
(Sharecast News) - AIM-listed residential social care provider CareTech said on Monday that it has agreed to be taken over by a consortium led by its co-founders for £870.3m.
Amalfi Bidco, the consortium created for the acquisition, includes Sheikh Holdings, set up by CareTech founders Haroon Sheikh and Farouq Sheikh, and fund management firm THCP Advisory.
Under the terms of the deal, CareTech shareholders will be entitled to receive 750p per share in cash. This represents a premium of around 28% to the closing share price on 4 March, which was the last business day before the start of the offer period.
Farouq Sheikh said: "Both Haroon and myself as founders believe that our offer for CareTech is in the best interests of all stakeholders. As the management team who founded and grew this business, we believe that we are best placed to ensure long-term continuity of management and care for our service users.
"Shareholders will receive immediate value in the form of a significant premium to the share price before the offer was announced or the ability to co-invest with us for the long-term. Service users and customers can be assured that we will continue to run and invest in the business carefully, with consideration and respect for our service users."
Rival suitor DBAY Advisors has until 1700 BST to either make a firm intention to make an offer for CareTech or walk away.
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