Dec 24 (Reuters) – Monash IVF Group said on Wednesday that a takeover proposal from a consortium valuing the Australian fertility services provider at A$311.7 million ($208.84 million) has been withdrawn, sending its shares to over a one-month low.
The stock fell as much as 15.9% to A$0.69 by 2350 GMT, set for its weakest trading session since August 22.
The A$0.80-per-share non-binding offer announced on November 24 from private equity firm Genesis Capital Investment Management and WHSP Holdings, a unit of Washington H Soul Pattinson represented a 31.1% premium to Monash’s close on November 21.
“The Monash board in consultation with its advisers has formed the view that the proposal in its current form is opportunistic in its timing and materially undervalues the company,” Chairman Richard Davis had said in a statement in November.
Mark Gardner, founder and CEO of MPC markets, echoed the company’s earlier sentiments, saying that the firm’s board had “every right” to reject the offer.
“We will likely see a recovery in confidence over the coming year,” he added, stating that the moves on Wednesday are “just symptomatic of mildly negative news in thin holiday markets.”
Last month’s takeover proposal came after two embryo mix-up incidents at Monash’s fertility clinics earlier this year, which led to the departure of then CEO and MD Michael Knaap.
($1 = 1.4925 Australian dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
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