(Alliance News) - DBAY Advisors Ltd on Monday said it submitted an indicative proposal for a possible all cash offer for CareTech of 750 pence per CareTech share.
The London-based international asset management firm said the offer represents a 28% premium to Caretech's closing share price on March 4. CareTech shares were trading 4.9% higher at 746.00 pence each in London on Monday morning.
DBAY said that the potential offer also includes a partial non-voting share alternative to enable shareholders to roll-over some of their investment and retain an interest in CareTech's future should they decide to do so.
The asset manager also confirmed that funds managed or advised by it or its affiliates have acquired 2.0 million CareTech shares in the past, representing 1.8% of CareTech's share capital. It noted that the highest price paid was 710 pence per share.
DBAY said that it looks forward to engaging in discussions with CareTech and its management team and working toward a recommended transaction.
London-based social care services provider firm CareTech confirmed separately on Monday that it received the non-binding indicative proposal from DBAY.
CareTech stated that discussions with DBAY are at an early stage. Further, it cautioned that there is no certainty that an offer will be made.
On April 1, CareTech, said that the date for to make an offer for the entire issued, and to be issued, share capital of CareTech has been extended to May 2, 1800 BST.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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