CareTech, a social care services company, has its eyes on a £600 million partnership with Cambian, a struggling rival firm, which could establish a sizeable specialist healthcare company.
CareTech is listed on Aim, a London junior market. It approached Cambian with an offer of 210p per share a few weeks ago. The 210p-a-share proposal is said to have had the backing of a number of the institutional shareholders of Cambian. Skynews revealed that some of those investors are now agitating for Christopher Kemball, the chairman of the company, to step down.
However, Skynews also revealed that the bid is said to have been rejected by the board of Cambian, despite the fact that the shares of the company are now weakening at less than 150p.
If the said bid is completed, the combined company would be an FTSE 250 specialist healthcare provider with almost 450 properties across the United Kingdom.
It was reported by Sky News that it was not clear whether any further talks had taken place since the approach of CareTech a few weeks ago.
CareTech specialises in the support for children and adults who have learning disabilities, providing a wide range of services for its clients while Cambian deals with contracts with the public sector with local authorities, running a range of services in the behavioural health of children.
The latter made a pre-tax loss of £9 million in 2017, as it had to face bad press from an inquiry into the level of services at one of the properties of the firm in Shropshire.
The executive chairman of CareTech suggested that the company was open to acquisitions, In its results announcement last month, the executive chairman wrote: “The group has a number of consolidation opportunities under consideration.”
He added: “In addition, it has a strong pipeline of organic additional beds in reconfigured services and in new services.”
Cambian and CareTech both refused to comment regarding the matter.