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 Sourcereported on 27 Julythat 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.
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 Sourcereported last Thursdaythat 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.
