Caretech founders gear up for privatisation takeover
Founders of Caretech Farouq and Haroon Sheikh are gearing up to make an offer, which could see the residential care company delisted from the London market.
According to reports from Mark Kleinman for Sky News, the brothers are in financing talks to launch a takeover bid for the firm.
The Sheikhs, who are executive chairman and chief executive, own a minority stake in the company, but need to raise hundreds of millions to make a formal offer on the firm, which primarily provides social care and education services for adults.
The supposed move comes as more and more companies are facing a “public-to-private” future in the UK market, with recent examples including the Mail Online owner Daily Mail and General Trust de-listing.
Inside sources suggest that the move is likely to be announced formally on the London Stock Exchange tomorrow.
Last month German bank Berenberg lowered its target price on Caretech from 700p to 660p, stating both top-line growth and margins appeared to be under pressure.
Berenberg stated that Caretech had reported “slightly weaker-than-expected” full-year results, due to challenges it is currently facing with staff.
Caretech had a £664m market cap on Friday’s close.