Shares rocket

CareTech agrees £870m deal to go private

Jamie Cumming

Shares in social care services firm CareTech Holdings closed 21% higher after it agreed to be bought by a consortium led by its co-founders for £870.3 million.

CareTech is one of Britain’s biggest housing and care services providers to adults with learning impairments and physical disabilities.

The board consists of veteran Scottish corporate adviser Jamie Cumming (pictured), Dr Moira Livingston and Adrian Stone.

CareTech shareholders will get 750p per share, representing a premium of about 23% to the stock’s last close on Friday.

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, an investment house with more than $2 billion of assets under management.

Private equity firm. Dbay has until 5pm today to make a rival offer but after CareTech’s announcement, it said that it did not intend to do so.

Mr Cumming joined the board as a non-executive director in 2013. He has enjoyed a long career in corporate advisory and broking, including acting as chief executive of N+1Brewin LLP, and as senior adviser to Canter Fitzgerald Europe.

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