Capita PLC (LON:CPI) said it has not received a takeover offer from private equity firm CVC Capital Partners.
The announcement comes after a Daily Mail report on Wednesday evening alleging the outsourcer had been eyed by CVC.
READ: Capita expected to shut a third of its offices as remote working proves a success
The private equity giant, which has US$105bn of assets under management, was reportedly facing competition from another potential buyer looking to snap up Capita’s education software division, which is up for sale.
Capita has seen its price plummet by 75% since March amid the pandemic, but had already been struggling with profits in the previous years.
Last month it reported an interim loss before tax of £28.5mln from a £31.2mln profit in 2019, then warned the slow return to growth means it will not generate sustainable cash flow for up to two years.
Earlier this week it was reported it would shut more than one in three of its UK offices to cut costs and have more staff working from home.
A major government contractor, Capita is working on 100 government pandemic response projects as well as long-term contracts such as managing London’s congestion charge and electronic tagging for prisoners.
Shares shot up 9% to 31.84p on Thursday at noon.