42 2GM Tuesday April 5 2022 | the times
Business
A bidding war has broken out for one of
Britain’s largest social care providers,
with an £850 million approach from
a private equity firm topping an earlier
bid from the company’s co-founders.
Dbay Advisors has made a 750p per
share proposal for CareTech Holdings,
a 28 per cent premium to the company’s
share price a month ago, before take-
over interest emerged from the family
office of Haroon and Farouq Sheikh,
CareTech’s chief executive and execu-
tive chairman.
The possible cash offer, made on
Friday from Dbay, is also a premium to
the 725p-per-share proposal from the
sibling co-founders. It includes a “par-
tial non-voting” share alternative,
limited to 30 per cent of the company’s
shares, to allow shareholders to “roll
over” some of their investment and re-
tain an interest in CareTech.
Dbay has acquired a 1.8 per cent stake
in CareTech, paying up to 710p perBattle for CareTech as Dbay
looks to trump founders
share on the open market. Shares in
CareTech were up by 30p, or 4.2 per
cent, at 741p, below the proposal price.
CareTech was founded in 1993 and
listed on Aim, the London Stock
Exchange’s junior market, in 2005.
It is a provider of specialist social care
and education services for about 5,000
adults and children with complex
needs in more than 550 residential
facilities and specialist schools in the
UK. It employs about 11,500 people.
Dbay has until 5pm on May 2 to
either announce a firm intention to
make an offer or walk away, under City
takeover rules.
The Kenyan-born Sheikh brothers
said on March 7 they were in the early
stages of forming a consortium for a
possible offer for CareTech, including
with THCP, an investment house with
more than $2 billion of assets under
management.
It made an initial proposal of 710p a
share on March 22, which was
sweetened to 725p on March 30.Alex RalphTed Baker on sale
A “for sale” sign has been hoisted by
Ted Baker’s board after the fashion
brand received a sweetened takeover
proposal from a US private equity firm
and rival bid interest.
Ted Baker confirmed last month that
it had rejected two takeover approach-
es from Sycamore Partners, which
would have valued the business at
£254 million. Since the buyout firm’s
last approach at 137½p a share, Ted
Baker said it had received a third
proposal and “other unsolicited third-
party bid interest”.
It said: “In view of the interest ex-
pressed by potential offerors, and
having consulted its major sharehold-
ers, the board has decided to conduct an
orderly process to establish whetherthere is a bidder prepared to offer a
value that the board considers attract-
ive relative to the standalone prospects
of Ted Baker as a listed company.”
Shares in Ted Baker rose by 18½p, or
14.4 per cent, to 146½p, valuing the com-
pany at £270 million.
It is not clear at this stage whether the
company has received one or more
other expressions of interest but City
sources said that Sycamore’s approach
had sent a signal that there could be an
opportunity for a leveraged buyout of
another undervalued British asset.
A formal sales process means the
board can conduct an auction in pri-
vate, without the restrictions of the
Takeover Panel’s typical 28-day time-
table. Sycamore’s present “put up or
shut up” bid deadline of 5pm on April 15
will fall away if it participates in theAshley Armstrong Retail EditorT
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