Care UK originally acquired 75% of Corvedale, announced on 29 September 2003. The consideration for the additional holding is £216,000 initially, in line with the amount already paid for the existing 75% holding, with further consideration of up to £184,000 payable contingent on Corvedale's performance for the year to 30 September 2005.
The initial consideration is payable half in cash and half in new Care UK ordinary shares of 10 pence each ("Ordinary Shares"), resulting in the issue of 28,092 Care UK Ordinary Shares which will rank pari passu with existing Ordinary Shares of the Company.
Application has been made to the UK Listing Authority to admit these shares to trading on the London Stock Exchange. Any contingent consideration that becomes payable will also be satisfied in the same proportions. The remaining 20% of Corvedale continues to be owned by Mr Simon Rouse, Managing Director of Corvedale and can be acquired by Care UK under an option exercisable between 30 September 2006 and 30 September 2008.