Japara Healthcare gets Federal Court approval for virtual meeting to decide on Calvary bid

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The Federal Court has given approval for Japara Healthcare to stage an online platform on 21 October for shareholders to vote on the offer by Not For Profit Little Company of Mary Health Care Limited (Calvary) to buy one of Australia’s largest providers and developers of residential aged care.

Calvary has offered $1.40 a share for the ASX-listed business, with the healthcare company’s shares standing at $1.39 at close of trading on Tuesday. Japara’s shares have remained at $1.39 after jumping from $1.15 when Japara’s board recommended Calvary’s bid.

Japara released its annual report on Tuesday after its subdued financial result earlier this month, stating it employed around 6,000 nurses, carers and other support staff to care for 4,000 residents in 50 homes located throughout Eastern Australia.

It also operates five retirement villages comprising 180 independent living units located adjacent to five of Japara’s residential care homes.

If the takeover is approved, Calvary, which owns and operates 14 aged care homes, 11 independent living communities, 14 public and private hospitals, two surgeries and community care, will become one of the biggest players in the Australian aged care sector.