CareTech shares soared 21% to 741p in late afternoon trading on Monday after the group reached agreement on a takeover offer for £870.3 million from Amalfi Bidco Limited.
CareTech confirmed it was recommending the offer from Amalfi Bidco to its shareholders, who would receive 750p per company share.
The cash consideration for the entire company’s issued and to be issued shares represents a premium of approximately 28% to the CareTech closing share price on 4 March 2022, the last business day before the offer period commenced.
“On behalf of the CareTech Independent Board, we are pleased to have reached agreement on the terms of a recommended cash offer by Bidco,” said CareTech non-executive director Jamie Cumming.
“We believe that this is in the best interests of our investors and other stakeholders, with the potential to deliver a number of strategic opportunities for the business through private ownership by Bidco.”
“As a consequence of the offer, CareTech’s founders will remain the controlling shareholders of the business. We believe this will allow the existing care-focused culture of the organisation to continue and enable CareTech to continue to deliver high standards of care to its service users.”