Is Japara in play? Share price boosted by 60% after Andrew Sudholz and David di Pilla both increase their stake

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The listed provider’s share price has risen from just $0.39 last Friday to be sitting at $0.64 (at time of writing) yesterday after two buyers – its former CEO and co-founder and the director of operator Aurrum Aged Care – purchased shares this week.

Andrew Sudholz – who stepped down from his CEO role in March this year – increased his holding from 15,700,000 shares (5.98%) to 21,558,333 (8.067%).

Aurrum Holding’s Director David di Pilla has meanwhile increased his securities to 16,753,341 or 6.27%.

All of the listed providers have seen major falls in their share prices this year as COVID impacted occupancy and operations.

But with Victoria’s lockdown restrictions easing, occupancy is going up – and costs down.

The increase gives Japara a market capitalisation rate of $172.37 million.

But it is worth remembering that when they listed on the ASX in April 2014, Japara was valued much higher.

As we reported here, the listing share price was $2.57, valuing the company at $707 million – a 35% increase on its expected $500 million valuation.

Senior analysts have previously told us that Japara was being significantly undervalued by the market – and with the Royal Commission set to deliver its recommendations in February, could prove a good buy for investors.

Back in June, Aurrum was also touted as the likely buyer of some of the listed providers’ aged care homes if it opted to reduce some of its debt by selling them off and leasing them back.

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