(Alliance News) - Sheikh Holdings Group Investments Ltd said on Monday it was in the early stages of a possible takeover offer for CareTech Holdings PLC.
The family office of Farouq and Haroon Sheikh confirmed it is in the "early stages" of forming a consortium to consider making an offer for the share capital of CareTech, a London-based social care services provider.
The Sheikh brothers founded CareTech in 1993, and hold positions as executive chair and chief executive officer respectively.
The statement was released in response to a Sky News article released on Sunday evening.
"If the brothers proceed to a formal offer, it would be the latest in a string of "public-to-private" transactions and provide an indication that deal-making activity in the City is not being brought to a halt by market uncertainty caused by Russia's invasion of Ukraine," Sky News reported.
https://news.sky.com/story/caretech-founders-plot-bid-to-take-social-care-group-private-12559267
Sheikh Holdings confirmed the board of CareTech had not yet been approached in relation to the potential offer. It now has until April 4 to announce an intention of a firm offer or withdraw from the process.
CareTech later noted the announcement by Sheikh Holdings. It confirmed its board has not yet received an approach and also the put-up-or-shut-up deadline of April 4.
CareTech said the independent members of its board have formed a committee, led by Jamie Cumming, to consider any possible offer.
CareTech shares were up 9.6% to 642.00 pence each in London on Monday afternoon.
By Elizabeth Winter; elizabethwinter@alliancenews.com; updated by Tom Waite; thomaslwaite@alliancenews.com
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