Caretech boss hails ‘transformational’ tie-up with Cambian

THE boss of social care company Caretech has called its deal to take control of rival Cambian in a reverse takeover “transformational”.

Aim-listed Caretech said it would offer 0.27 new shares and 100p in cash, or 190p a share in a full-cash offer, to acquire FTSE Smallcap company Cambian. The deal values the target at £372m. It already has support from 60.5pc of Cambian shareholders, who have irrevocably chosen the cash-andshare option.

Farouq Sheikh, executive chairman of Caretech, said: “This is quite a transformational step for us because we’re buying quite a scalable business and actually… what this leads to is better outcomes for the service users that we support. By combining the two businesses, it leads to better opportunities for the staff of the enlarged group because we offer better career prospects and training and development, and also for the shareholders, it’s a significantly accretive deal.”

Caretech has identified about £3m of pre-tax cost savings that would be realised in the financial year ending Sept 30 2019 under the deal.