Two ex mutual societies are proposing to shareholders they merge to create one of the largest pure play retirement and aged care companies on the Stock Exchange, with villages in all mainland states. The IOR Group (originally the Independent Order of Rechabites) out of Melbourne and Aevum (originally the Hibernian Society) out of Sydney have agreed to merge. Aevum proposes to acquire all of IORs shares in a share swap, valuing IOR at $74 million or $1.36 per IOR share. Aevum will be the senior partner with 73% of the equity split. The big points are:
29 villages / 3,100 ILUs / 165 beds
NSW / VIC / QLD / SA / WA coverage
Aevum's debt gearing cut from 22% to 19%
Earnings per share and cash flow positive in 2010/11
Development pipeline of 704 ILUs plus 215 beds
$4 million in duplicated costs eliminated
Steve Mann will continue to be managing Director of the merged group
Closing the Melbourne IOR Head Office
(IOR has just rebranded as Salford Living).
Opinion
Retirement villages have Canberra’s attention – now the sector must prove its value
Three years after Daniel Gannon took the reins of the Retirement Living Council (RLC), the sector has achieved something his predecessor Ben Myers was never able to: national recognition in Canberra. This is just the fist step. Retirement villages now need to capitalise on this moment. Here’s how.
