CareTech says management buyout offer falls through

CareTech Holdings, a social care services firm, said a management buyout offer fell through as they could not put forth a ‘compelling price’ due to funding terms.

The management and their advisers, who were able to get funding, were not satisfied with the financing terms to go ahead with the offer, CareTech said.

CareTech had commenced a strategic review in July, including an evaluation of an offer from the management.

‘Whilst a management offer which would work for all parties is not forthcoming, the process has revealed many positives, (including the support of its senior lenders),’ Executive Chairman Farouq Sheikh said in a statement.

The company, along with its subsidiaries, provides a range of specialist social care and housing support services for people with learning and physical disabilities.

CareTech said separately that underlying pretax profit for the year ending Sept. 30 fell 3 percent to 15.9 million pounds owing to higher depreciation and financial costs.

However, revenue rose 22 percent to 109.2 million pounds.

CareTech shares, which have shed 75 percent of their value since so far this year, were trading up 8.4 percent at 83.75 pence at 0829 GMT on Thursday on the London Stock Exchange.