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McCarthy & Stone Shares Surge 44.4% on £630M Takeover

Simon Mugo trader
Updated 23 Oct 2020

Practice Stock Trading
McCarthy & Stone logo

Shares of McCarthy & Stone PLC (LON: MCS) today surged 44.4% after the company revealed that it had agreed to a £630 million takeover offer from US private equity group Lone Star.

The offer valued McCarthy’s shares at 115p each, a 38.5% premium to yesterday’s closing price of 83p.

The company which builds retirement homes in the UK has been badly affected by the coronavirus pandemic lockdown which saw it book a £91.3 million loss in the six months ending in April.

McCarthy hinted that it would change its business strategy to become more service-oriented given that it was forced to suspend its operations as a building contractor during the coronavirus lockdown period.

Lone star capital said that it recognises the achievements of McCarthy so far and that the acquisition offers it an excellent opportunity to enter the UK retirement living sector.

McCarthy & Stone share price

Tradingview chart of McCarthy & Stone share price 23102020

McCarthy & Stone shares today surged 44.4% to trade at 119.9p having gapped higher from Thursday’s closing price of 83p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading