Freedom Care Group’s 29%-owned Koala Disability Care has agreed to sell its Tuggerah disability care and registered NDIS provider business for $2.238 million plus GST. The deal could provide a cash distribution to Freedom Care, although the amount and timing of its proceeds remain unclear.
- $2.238 million sale agreed for Koala’s Tuggerah disability care business
- Freedom Care holds a 29% interest through its wholly owned subsidiary
- 20% of the sale price is subject to client-transition adjustments
- Settlement is scheduled for 14 October 2026
- Freedom Care continues to pursue pathways to relist on the ASX
Koala agrees to $2.238 million business sale
A 29%-owned investee of Freedom Care Group Holdings Limited (ASX:FCG) has agreed to sell its Tuggerah-based disability care and registered NDIS provider business for $2,238,229, excluding GST. The purchaser is Ello Care Pty Ltd, with settlement scheduled for 14 October 2026 unless the parties agree otherwise.
Koala Disability Care Pty Ltd is held 29% by Freedom Care Corporation, a wholly owned subsidiary of Freedom Care. Following the transaction, Koala’s sole asset is expected to be the sale proceeds, while Freedom Care will retain its shareholding in the entity.
Final proceeds depend on client transfers
The deal includes a $223,822 deposit, representing 10% of the sale price, with the remaining $2,014,406 payable in cleared funds at settlement. However, the headline figure is not entirely free of conditions: 20% of the sale price will remain in the vendor’s solicitor’s trust account for two months after settlement.
That retention arrangement is tied to the number of NDIS clients who transition to Ello Care by the relevant adjustment date. In practical terms, the amount ultimately available for distribution may change depending on client movements, and Freedom Care has not quantified the proceeds it expects to receive or its likely net accounting impact.
Sale proceeds sit alongside relisting plans
Freedom Care said it will receive its portion of the sale proceeds, together with any other distributions to which it is entitled, once the transaction is completed. The announcement does not state how Koala’s proceeds will be distributed or whether any competing claims, costs or liabilities will affect the amount reaching the listed parent.
The company also said it continues to explore pathways to facilitate a relisting on the ASX. That makes settlement the immediate measurable catalyst, but the more consequential question is how much cash reaches Freedom Care and whether the disposal improves its prospects of returning to the market. The 14 October target date is therefore only the first checkpoint; the subsequent client-transition adjustment and any relisting proposal will determine how much substance sits behind the announcement.
Bottom Line?
The sale creates a potential cash event, but investors still need the final distribution figure and a clearer relisting pathway.
Questions in the middle?
- How much of the $2.238 million sale price will ultimately be distributed to Freedom Care?
- Will NDIS client transfers trigger any material reduction in the retained amount?
- What structure and timetable could support Freedom Care’s proposed ASX relisting?