The fate of ASX-listed Japara Healthcare has been decided today with shareholders casting votes online to accept the proposed acquisition of the aged care provider by the Not For Profit Little Company of Mary Health Care Limited, known as Calvary.
As we reported here, the Federal Court gave approval last month for Japara to stage an online platform today for shareholders to vote on the offer.
The result will mark the end of a six-month journey for the provider which received a shock $1.04 per share acquisition offer – valuing the company at $278 million offer from the Catholic Not For Profit back in April.
Calvary is one of Australia’s largest healthcare and aged care providers with four public hospitals, 11 private hospitals, 14 aged care facilities and 11 retirement villages plus 12,000 staff.
Should the deal go ahead, the NFP will add Japara’s 50 aged care homes and five retirement villages to its portfolio – at a 27% premium on its original offer.
Calvary raised its offer to $1.20 per share – an 18% jump – in June as Japara opened its books for due diligence before Not For Profit Bolton Clarke launched a rival bid of $1.22 per share.
But in July, Japara announced that it had entered into a Scheme Implementation Deed (SID) with Calvary for $1.40 per share – but well below Japara’s 2014 listing price of $2.70.
Will the shareholders vote in favour of the offer – knowing that those who bought in early which include co-founder Andrew Sudholz and its largest shareholder, MA Financial Group (formerly Moelis Australia) – stand to lose out on their investment?
Japara’s second largest shareholder, Aurrum Aged Care Chairman David Di Pilla – who would receive a return on his 9.92% investment – has already stated that he backs the offer in the absence of a higher bid.