90% of Japara shareholders support $380M Calvary takeover

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Catholic Not For Profit Calvary is now positioned to become one of the largest providers of aged care in Australia after shareholders of the ASX-listed Japara Healthcare voted in favour of its takeover bid, first launched in April this year.

As we reported last week, Japara shareholders voted in favour of supporting Calvary’s proposal to acquire 100% of its shares, at $1.40 a share – valuing Japara at $380 million.

89.10% of Japara shareholders were present and voting (either in person or by proxy) in favour of the resolution, with 89.89% of votes cast in favour of the resolution.

The scheme was formally approved on Monday and will now be implemented on 5 November 2021, with Japara shares now suspended from official quotation on ASX.

The deal sees Calvary, known as Little Company of Mary Health Care Ltd, acquire Japara’s 50 aged care homes with over 4,000 residents and five retirement villages.

Calvary National CEO, Martin Bowles (pictured), said: “We will work closely with the Japara team to transition their care homes into Calvary’s expanded national offering which extends across hospital care, residential care and home care.”

The Not For Profit is already one of Australia’s largest healthcare and aged care providers with 14 hospitals and 17 aged care facilities and retirement villages.

In July, it reportedly secured a new $500 million-plus debt facility to help bankroll the transaction, with ANZ Banking Group, National Australia Bank and Westpac Banking Corp all agreeing to join the new debt syndicate.

But the takeover marks the first time a Not For Profit has successfully acquired an ASX-listed company in the aged care space.

So will others follow?

Not For Profit Bolton Clarke launched a rival bid for Japara, but was pipped by a higher offer from Calvary – so there is interest among the larger Not For Profits.

With Menarock Life and Allity also fishing for buyers, both Not For Profits and private groups would appear to have their pick – but will they bite?