CareTech Holdings plc : Conclusion of strategic review - Replacement

The following amendment has been made to the ' Conclusion of strategic review and offer period' announcement released on 8 December 2011 at 7am under RNS No 5880T.

The original announcement read "This announcement should be construed as an announcement being made under Rule 2.8 of the City Code on Takeovers and Mergers."

It should have read "This announcement should be construed as an announcement made by the management team of the Company under Rule 2.8 of the City Code on Takeovers and Mergers and, as a consequence, the Company is no longer in an Offer Period."

All other details remain unchanged.

The full amended text is shown below.

For Immediate Release

8 December 2011

CareTech Holdings PLC

("CareTech" or "the Group" or "the Company")

Conclusion of strategic review and end of offer period

CareTech announced on 8 July 2011 that it was commencing a strategic review to evaluate the most appropriate method of delivering value to shareholders.  This review included an evaluation of a largely leverage funded offer from management for the Company.  Since this date the management team and their advisers have been successful in securing finance for an offer reflecting the attractiveness of the company to lenders.  However, the terms of such finance particularly in respect of junior leverage have to date not proved to be sufficiently attractive to allow the management to put forward a proposal at a price which the board currently believes to be compelling for shareholders. 

This evaluation process has been completed with little impact on the business, but it is now appropriate to draw it to a close.  As part of the strategic review the board has refined its business model to focus on growth initiatives which can be achieved through the reinvestment of operating cash flows. The implementation of this strategy has required an investment in additional personnel, the further development of the care pathway approach and the focussing of resources on non residential care opportunities.  The board believes that CareTech is well equipped to deliver sustainable earnings growth without significant growth in net debt.

This announcement should be construed as an announcement made by the management team of the Company under Rule 2.8 of the City Code on Takeovers and Mergers and, as a consequence, the Company is no longer in an Offer Period.

Commenting on the announcement Farouq Sheikh, Executive Chairman said:

"Whilst a management offer which would work for all parties is not forthcoming, the process has revealed many positives.  The support of funding providers including our current senior lenders has further underscored the positive regard in which they hold our business.  Similarly, the process has reinforced the commitment and enthusiasm of the management team for the business which will be to the benefit of shareholders in periods to come.  As set out in our results also released today, whilst the environment remains challenging trading has been strong evidencing management's motivation and reflecting the effectiveness of the Group's care pathway approach."

Enquiries:

CareTech Holdings PLC	01707 601 800
Farouq Sheikh, Executive Chairman
Michael Hill, Group Finance Director
Brewin Dolphin	0845 213 4730
Matt Davis
Sean Wyndham-Quin

ENDS