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CareTech Holdings PLC suitor Sheikh Holdings Group (Investments) Ltd upped its takeover proposal for the London-based social care services provider, matching an offer made by DBAY Advisors Ltd last week.
A Sheikh-fronted consortium has submitted a new 750 pence per share proposal for CareTech, upped from a previous 725p tilt. CareTech had already been ‘minded to recommend’ that 725p offer, Sheikh noted.
The 750p bid values CareTech at £850.0 million. The proposal does not constitute a firm offer, Sheikh noted.
CareTech shares closed 0.7% higher at 750.00p each in London on Wednesday.
Farouq and Haroon Sheikh, the Sheikh brothers, founded CareTech in 1993, and hold positions as executive chair and chief executive officer respectively.
The Sheikh consortium includes Belgravia Investments Ltd, Kensington Capital Ltd, funds managed by THCS IV GP Sarl and finally THCP Advisory Ltd.
‘The consortium believes that the revised proposal provides holders of CareTech shares with a substantial premium, in cash, while also offering a full and fair valuation for the company's successes to date and commensurate compensation for its future prospects,’ Sheikh said.
Including CareTech shares already owned by Sheikh and those ‘acting in concert’ the bid has the support of roughly 50% of CareTech shareholders, through irrevocable undertakings and non-binding letters of intent.
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