As we reported here, the Catholic Not For Profit made the surprise bid for the ASX-listed provider last Friday, offering $1.04 per share which values the company at $277.9 million.
Founded in 1885, Little Company of Mary Health Care 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.
Calvary has advised that the company does not hold a beneficial or economic interest in Japara.
The Not For Profit proposes to acquire 100% of shares in Japara at $1.04 each via a scheme of arrangement which is dependent on unanimous recommendation by the board.
Japara says it is considering the bid in the context of “expected improvements in trading conditions”, along with the Federal Budget on 11 May and the Government’s full response to the Aged Care Royal Commission expected this month.
The offer saw Japara’s share price jump from $0.80 at last Thursday’s close to $0.98 on Friday afternoon – it is now currently sitting at $1.01, just shy of the bid offer.
So, will Calvary be forced to raise its offer?
Read more about the bid – and why Calvary is likely to be throwing its hat into the ring now – in this week’s issue of SATURDAY, in your inbox at 6am, Saturday 8 May.
