- CareTech will return to private ownership via a partnership led by its co-founders.
- Shareholders will receive 750p per share, a 23 percent premium over the stock’s Friday closing price.
- The successful offer from Amalfi trumps an offer from private equity firm DBAY.
CareTech has agreed to return to private ownership via a partnership led by its co-founders, valuing the UK distributor of social care services at £1.2bn.
CareTech, situated in Hertfordshire, provides housing and care services for persons with disabilities. Shareholders will receive 750p per share, a 23 percent premium over the stock’s Friday closing price.
The price of CareTech shares increased to 739 pence per share in early Monday trade.
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The cash offer will be partially supported by £258 million in debt supplied by THCP Advisory.
The successful offer from Amalfi, a partnership led by CareTech co-founders Haroon and Farouq Sheikh, trumps an offer from private equity firm DBAY in April, which was also for 750p per share.
CareTech’s bid was examined by independent board members Jamie Cumming, Moira Livingston, and Adrian Stone.
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“Both Haroon and myself as founders believe that our offer for CareTech is in the best interests of all stakeholders,” said Farouq Sheikh in a statement on Monday.
“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.”
