April 20 (Reuters) – Australia’s Monash IVF said on Monday that it had rejected a takeover offer from a consortium valuing the fertility services provider at A$350.7 million ($250.36 million), sending its shares down more than 11%.
The company said the offer from the consortium, comprising Genesis Capital and Washington H. Soul Pattinson’s investment arm, undervalued Monash, but that it remained open to a higher offer.
It said the A$0.90-per-share offer was at a substantial discount to comparable IVF transactions in the Australian market. Shares closed 0.7% higher at A$0.765 on Friday.
The response marks the second rejection of a proposal by the consortium, after it struck down an offer in November valuing the company at A$311.7 million.
Shares of Monash fell as much as 11.1%, erasing most gains clocked following the revised offer on April 13.
“The Board, in consultation with its advisers, has formed the view that the revised proposal in its current form undervalues the company”, Chairman Richard Davis said in a statement.
($1 = 1.4008 Australian dollars)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Lisa Shumaker and Sherry Jacob-Phillips)
