Japara Healthcare shares hit a two-year high as its shareholders warmed to a recommended $380 million offer from Little Company of Mary Health Care, also known as Calvary Health Care.

The first of an expected wave of mergers in the beaten-down aged care sector is a step closer after the board backed the $1.40 per share cash offer in the absence of a better one - and as long as the independent expert Deloitte Corporate Finance finds it’s fair and reasonable to Japara shareholders.