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Monash IVF Group (ASX:MVF) has soared +40% on Monday as the company rejected a non-binding takeover offer from a consortium consisting of Soul Pattison and Genesis Capital Investment Management, climbing up to 85cps as the MVF rejected a takeover offer at 80cps it called “opportunistic.”
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Over $13 million shares had traded hands by late morning Monday, in a show of force from shareholders and other market participants backing MVF’s rejection, ultimately implying that MVF could be the beneficiary of a future higher offer.
(That comes even as YTD performance for MVF holders sits down at a negative -33%.)
In Q1CY24, MVF was trading at $1.50/sh (though this reflects a peak across the last 12 months; share price was closer to $1 by late CY2024 and then plummeted at the start of the year. Its current valuation(s) – including the 80c offer put forth in the non-binding bid – was described as “theft” by at least one HotCopper user.
This view, at least, appears to be supported in principle by the board at MVF. “Monash IVF notes that based on the Offer Price, the implied EV/ Underlying FY25 EBITDA multiple is 7.7x, which is a substantial discount to comparable IVF transactions in the Australian market,” the company wrote on Monday.
“The Board has considered the Proposal, including with the assistance of its financial and legal advisers and unanimously determined that the Proposal materially undervalues Monash IVF and is not in the best interest of the Company’s shareholders as a whole. The Board has therefore determined to reject the proposal in its current form.”
MVF last traded at 85cps.
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