(Sharecast News) - CareTech announced an improved possible offer for the company on Friday, as its co-founder brothers continued their plans to take it private.
The AIM-traded firm said it had received a fresh proposal from the consortium, led by Sheikh Holdings, for 725p per share.
Its initial proposal, received by CareTech on 22 March, was for 710p in cash for each ordinary share.
Sheikh Holdings is controlled by Haroon and Farouq Sheikh - CareTech's co-founders and respectively its group chief executive officer and executive chairman.
The other members of the consortium included Belgravia Investments, Kensington Capital, and funds managed by THCL IV GP.
CareTech's independent board members indicated on Friday that the fresh proposal was at a level they were likely to recommend shareholders accept.
"The independent directors, having evaluated the revised proposal together with their advisers, have confirmed to the consortium that the revised proposal is at a value the independent directors would be minded to recommend should an offer be made at that price, subject to satisfactory resolution of the other terms of the revised proposal," the board said in its statement.
In light of the new proposal, CareTech, the Sheikh-led consortium and the Takeover Panel had agreed to extend the put-up-or-shut-up date to 1700 BST on 2 May, by which time the consortium would either need to make a formal offer, or stand down from its proposals.
At 1422 BST, shares in CareTech Holdings were up 1.95% at 705.51p.
