Japaras expected to cost Calvary more than $550 million. Its $1.40 a share bid valued Japaras equity at $375 million, while the company had net debt worth $208 million as it most recent results (for the six months ended December 31). The bulk of the debt was to help fund developments.
The deal marks a turning point in Australias aged sector. Japara, and rivals Regis and Estia, headed to public markets in a rush of listings last decade. While investors saw the long-term potential, they couldnt look past short/medium issues dogging the sector, including a Royal Commission and regulatory uncertainty, and the companies shares have traded poorly in recent years.
Public to private
Calvarys bid – and indeed that of RSL Care owner Bolton Clarke…
Read the full article at: https://www.afr.com/street-talk/big-banks-pile-into-calvary-health-new-debt-to-help-swallow-japara-20210727-p58ddo
