BREAKING NEWS

BREAKING NEWS

CareTech agrees to buy rival Cambian for up to $473 million

Now Reading:

CareTech agrees to buy rival Cambian for up to $473 million

Text size Aa Aa

(Reuters) - British social care services firm CareTech Holdings Plc <CTH.L> on Thursday agreed to buy rival Cambian Group Plc <CMBNC.L> in a deal that could be valued up to 372 million pounds, as it looks to bolster its child care business.

CareTech, which had been in talks with Cambian since July, is offering cash-and-stock or all cash in the deal. The latest terms are lower than the initial offers.

Cambian was not immediately available for comment.

The latest cash-and-stock offer values Cambian at about 372 million pounds. Under terms, CareTech would provide 0.267 new shares and 100 pence in cash. This values each Cambian share at 200 pence, a premium of about 5 percent to Wednesday's close of 190.5 pence.

The all-cash offer values Cambian at about 353 million pounds ($448.52 million). Under these terms, Cambian shareholders will receive 190 pence per share.

However, the latest proposals were below CareTech's first bid in early July. At that time, the cash-and-stock offer valued Cambian at 220 pence per share, while the full cash offer was for 200 pence per share.

CareTech said the proposed acquisition would expand its presence in education and behavioural health services for children.

(Reporting by Justin George Varghese and Arathy S Nair in Bengaluru; Editing by Bernard Orr)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.