Australia’s Monash IVF rejects $201 million buyout bid, shares soar to 6-month peak

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(Reuters) -Monash IVF Group said on Monday it had rejected an offer from a consortium that valued the Australian fertility services provider at A$311.7 million ($201.11 million), sending its shares soaring to a six-month high.

The A$0.80-per-share non-binding offer 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 Friday close.

Shares of Monash surged 40.2% to A$0.855 in early trade, hitting their highest level since May 19 and heading for their largest single-day rise on record if current gains held.

Monash said the offer price was at a substantial discount to comparable IVF deals in the Australian market while highlighting uncertainty over the consortium’s proposed financing arrangements.

“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 said in a statement.

The 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.

The consortium already holds about 19.6% of Monash IVF’s shares, the company said.

($1 = 1.5499 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu)