The Australian newspaper is reporting the company, chaired by Kerry Stokes (pictured), is the sub-underwriter for the retail share of Estia’s current capital raising.

Seven Group already had a stake in the private operator, but the move will likely see its shareholding rise above 5% after the share offering is completed.

Estia Aged Care had already raised $72M through an institutional offering of $2.10 per share last month. The non-renounceable retail offer, which closes tomorrow, is aiming to raise a further $65M.

If the retail offer falls short of expectations, the sub-underwriter can pick up the remaining shares, at the low asking price.

It’s unusual for only one company to act in the sub-underwriter role, leading to speculation Seven plans to build a bigger stake in Estia Aged Care.

Image credit: Jane Dempster.