Aevum merges with IOR (now Salford Living): 29 villages + 360 beds

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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 IOR’s 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 ILU’s / 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 ILU’s 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).