CareTech shares rose 4.7% to 745p in early afternoon trading on Monday after the company reported a possible takeover offer from DBAY Advisors.
The care provider group confirmed that it received a non-binding indicative proposal from DBAY Advisors for a possible offer for the firm’s entire share capital, both issued and yet to be issued.
CareTech announced that DBAY Advisors recommended an offer price of 750p in cash per group share.
The firm mentioned that the proposal included a non-voting share “alternative offer” for shareholders to roll-over part of their investment to retain an interest in CareTech’s prospects beyond the potential acquisition, which the company confirmed would remain limited to up to 30% of issued capital.
CareTech said that discussions were currently in the early stages, and the group highlighted that could be no certainty that an offer would be made.