An Australian fertility treatment company has turned down its second buyout proposal in less than six months, saying the latest bid falls short of the company’s true worth.
Monash IVF announced Monday that it has declined an acquisition proposal from investment partners Genesis Capital and Washington H. Soul Pattinson’s investment division. The deal would have valued the fertility clinic operator at A$350.7 million, equivalent to about $250.36 million in U.S. currency.
Company leadership stated that while they remain willing to consider a more attractive proposal, the current bid significantly undervalues their operations when compared to similar fertility industry deals across Australia.
The investment group’s latest proposal offered A$0.90 for each share, which company officials described as considerably below market rates for comparable fertility service transactions. Trading closed Friday with shares gaining 0.7% to reach A$0.765.
This marks the second time Monash IVF has declined an approach from the same investor consortium. The company previously rejected a November proposal that would have valued the business at A$311.7 million.
“The Board, in consultation with its advisers, has formed the view that the revised Proposal in its current form undervalues the Company,” stated Chairman Richard Davis in an official company announcement.
