CareTech Holdings (AIM:CTH) has received a potential takeover offer of £850mln (US$1.12bn) from global asset management firm Dbay Advisors, topping the earlier offer from private family office Sheikh Holdings Group.
The British social care services company was in discussion with a consortium formed by Sheikh Holdings regarding a possible offer at 725p per share.
Dbay’s 750p per share proposal is a premium of 5.5% to CareTech’s closing price on Friday and a 28% premium to the price on March 4.
AIM-traded CareTech's shares were trading 4.5% higher at 743p each in the afternoon.
CareTech said in a statement: "Discussions with Dbay and their advisers are at an early stage and accordingly there can be no certainty that an offer will be made."
Dbay said related funds had already taken a stake of about 1.8% in CareTech on the open market at a price of 710p per share.
There is a partial non-voting share alternative limited to 30% of CareTech share capital.
For the fiscal year ended September 30, 2021, CareTech, which provides housing and care services to adults with disabilities, reported a 75% gain in profit before taxes.