Mitie (MTO) has finally offloaded its long-suffering UK social care division. The outsourcer has sold the business to healthcare-focused private equity firm, Apposite Capital, for just £2.
IC TIP:
Hold
at
223p
Following the sale, the group will also contribute £9.45m towards funding trading losses and the turnaround plan. The sum will be paid in two tranches of £5.4m, in April and the balance in July. Investors breathed a sigh of relief at the sale, sending the shares up by as much as 10 per cent on the morning of the announcement. Healthcare has been a thorn in the side of the group for some time now, with tightened government spending forcing it to close branches in 2015 and subsequent losses leading to a £117m impairment in 2016.
