Civitas Social Housing agrees takeover by CK Asset Holdings, shares surge

Civitas Social Housing surged on Tuesday after it agreed to be bought by Wellness United Limited - a wholly-owned subsidiary of CK Asset holdings - in a £485m deal.

Under the terms of the offer, Wellness will pay 80p per share in cash. This is a 44.4% premium to the closing share price on Friday.

"CKA believes that Civitas' position as one of the leading social housing providers in the UK, and its social impact and earnings profile, are complementary to its investment criteria, and make for a suitable strategic fit," it said.

"In addition, given the recent turbulent financing markets caused by macroeconomic uncertainties, CKA believes that its strong financial standing will be beneficial to Civitas in sourcing future financing commitments at an operational level during these times."

At 1100 BST, Civitas shares were up 43% at 79.30p.