Major Japara shareholder David Di Pilla backs Calvary’s $380M takeover

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Aurrum Aged Care Chairman David Di Pilla says he backs the $380 million offer from Little Company of Mary Health Care, known as Calvary Health Care, for leading ASX-listed aged care provider Japara Healthcare in the absence of a higher bid.

Mr Di Pilla is the second largest shareholder of Japara Healthcare, holding 9.92% through Aurrum Holdings, behind Moelis Australia Asset Management, which holds 13.33%.

The Weekly Source reported on 27 July that the Not For Profit Little Company of Mary Health Care had its offer of $1.40 a share accepted by Japara Healthcare’s board of directors for its 50 aged care homes with over 4,000 residents and its five retirement villages.

“In line with the Japara board recommendation, Aurrum intends to vote all shares in support of the proposed scheme, in the absence of a superior proposal,” Mr Di Pilla told The Australian Financial Review.

“We are satisfied that Japara and its advisers have run a competitive process with two highly credentialed organisations, which reflects the long term value of the Japara business.”

Little Company of Mary Health Care had almost $300 million in cash and cash equivalents as at June 30 last year, and borrowings worth less than $70 million. It also had $265 million in mostly unused external loans and $814 million in net assets.

The Weekly Source reported last Thursday that Little Company of Mary Health Care had secured a new loan of over $500 million to help pay for Japara Healthcare, which reported a net debt of $208 million.