Civitas Social Shares Rise on Cash Offer of Around $612 Million
By Michael Susin
Civitas Social Housing shares rose after the group agreed on a recommended all-cash offer by Wellness Unity.
Shares at 0916 GMT were up 23.6 pence, or 43%, at 79.0 pence.
According to the deal, the wholly-owned indirect subsidiary of CK Asset Holdings will offer 80 pence for each Civitas share, valuing it at around 485 million pounds ($612 million).
The offer represents a premium of around 44% to the closing price of 55.4 pence on Friday, the last business day prior to the announcement.
"The Civitas board believes the offer undervalues the long-term prospects of Civitas but recognizes that Civitas and the sector in which it operates faces a number of challenges in light of the current macro environment and outlook," it said.
The company said that its directors intend unanimously to recommend that shareholders accept the offer.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
May 09, 2023 05:41 ET (09:41 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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