The Japara Healthcare Ltd (ASX: JHC) share price has been a positive performer on Tuesday.
In afternoon trade, the aged care provider's shares are up 6% to a 52-week high of $1.26.
This latest gain means the Japara share price is now up more than 100% since the start of the year.
Why is the Japara share price charging higher?
Investors have been bidding the Japara share price higher on Tuesday after it received a takeover offer from a second suitor.
This follows the receipt of a revised conditional, non-binding indicative proposal from Calvary last week offering $1.20 cash per share.
According to today's announcement, Japara has now received a conditional, non-binding and indicative proposal from RSL Care RDNS, which is part of the Bolton Clarke Group (Bolton Clarke).
The Australian not-for-profit provider of home care, retirement living, and residential aged care has offered to acquire 100% of the shares in Japara by way of a scheme of arrangement at $1.22 cash per share. This price will be adjusted downwards for any dividend declared prior to implementing a scheme.
Bolton Clarke's offer is subject to a number of conditions such as the completion of due diligence to its satisfaction, binding financing arrangements with third parties, a unanimous recommendation from all Japara Directors, final approval of the Bolton Clarke Board, and the execution of final agreed transaction documentation.
The release explains that the Japara Board has considered the Bolton Clarke proposal and has determined that it is appropriate to offer due diligence access. This is so that Bolton Clarke can potentially develop a binding proposal.
What's next?
With the Japara share price now trading above both offers, it appears as though investors are hoping that a bidding war will soon commence, driving the offer prices higher.
Though, it is worth noting that Japara has warned that there is no certainty that either proposal will result in a transaction, let alone a higher offer.