CareTech Holdings (AIM:CTH) PLC has agreed to the 750p-per-share cash takeover offer from its founders and has recommended that shareholders support it.
The board’s independent committee, consisting of non-executive directors Jamie Cumming, Moira Livingston and Adrian Stone, was said to have reached an agreement with the Amalfi Bidco vehicle of founders Farouq and Haroon Sheikh, the executive chairman and chief executive, over the deal, which values the group at £870.3mln and will be completed via a scheme of arrangement.
Following advice from brokers Panmure Gordon and Numis, the independent board said it considered the financial terms of the offer to be fair and reasonable.
CareTech shareholders holding 24.7% of the shares have provided irrevocable undertakings to back the deal and shareholders holding another 13.8% have provided non-binding letters of intent to support it too.
A rival offer at 750p was also made by asset management firm DBAY Advisors.
The Sheikh brothers also made previous offers at 725p per share and at 710p.