(Sharecast News) - CareTech confirmed on Thursday that its co-founders had sweetened their offer to take the company private, as the battle between the Sheikh brothers and asset management firm Dbay Advisors continued.
The AIM-traded firm said the Sheikh Holdings consortium, controlled by brothers Haroon and Farouq Sheikh, had improved their possible offer to 750p cash per share, with a partial share alternative.
That brought the Sheikh's bid up to the same level as that proposed by Dbay on 4 April.
The Sheikhs, who founded CareTech in 1993, initially proposed a bid of 710p per share, before upgrading it to 725p before Dbay's plans came to light.
CareTech said the Sheikh consortium had received irrevocable undertakings representing 16.8% of CareTech's issued share capital while Sheikh Holdings controlled 12.2% of CareTech's voting rights.
The consortium also said it had received non-binding letters of intent representing 21.1% of CareTech's issued share capital.
CareTech's independent directors said they had considered the revised proposal including the irrevocable undertakings, non-binding letters of intent and interests held by Sheikh Holdings, representing a total of 50.1% of CareTech's share capital.
"[The independent directors] would be minded to recommend the possible offer should an offer be made at that price, subject to satisfactory resolution of the other terms of the revised proposal," CareTech said in its statement.
"There can be no certainty that an offer will be made."
At 1156 BST, shares in CareTech Holdings were down 0.13% at 746p.
