- Shares in Australian funeral services provider InvoCare (IVC) are sliding after announcing private equity firm TPG Global withdrew its $1.81 billion takeover proposal
- The decision comes after InvoCare failed to provide the US-based TPG Global with due diligence
- InvoCare says its Board unanimously concluded the indicative proposal did not provide compelling value for its shareholders and thus made the decision not to grant due diligence
- Despite turning down the $12.65 per share offer, InvoCare says it remains open to “any proposal that represents fair value in the interests of all shareholders”
- Shares in IVC are down nearly 10 per cent and trading at $10.94 at 2:15 pm AEST.
Shares in Australian funeral services provider InvoCare (IVC) took a hit during Monday’s early trade after announcing private equity firm TPG Global withdrew its $1.81 billion takeover bid.
TPG Global’s decision to withdraw its offer came after InvoCare failed to provide due diligence.
InvoCare announced that its Board unanimously concluded the indicative proposal did not provide compelling value for its shareholders and, for that reason, did not grant due diligence.
However, the company did note it offered TPG access to limited, non-public financial information on a non-exclusive basis to assist with the creation of a revised proposal.
InvoCare reported that TPG Global did not sign the confidential agreement, nor produce a revised proposal.
The funeral services provider urged that while it was heavily opposed to the $12.65 per share offer, it remains open to “any proposal that represents fair value in the interests of all shareholders”.
Despite withdrawing its offer, TPG Global recommended to InvoCare to add Genevieve Gregor as a Non-Executive Director, given the private equity firm’s stake of more than 17 per cent in the company.
The company’s share price has taken a knock recently, dipping more than 16 per cent over the past five years, and falling six per cent in the last month alone.
Headquartered in Sydney, InvoCare is a leading provider of funeral services in Australia, New Zealand, and Singapore, and operates private memorial parks and crematoria in Australia and New Zealand. It’s also a leading provider of pet cremation services in Australia.
The InvoCare board believes the company has strong future prospects as a leading provider of deathcare services across Australia, New Zealand and Singapore.
Shares in IVC were down nearly 10 per cent and trading at $10.94 at 2:15 pm AEST.