Monash IVF has rejected an unsolicited takeover proposal from a consortium led by Genesis Capital and Washington H. Soul Pattinson. The consortium offered 80¢ a share, but the Monash IVF board has labelled the offer opportunistic, asserting that it falls well below the valuation of comparable deals within the fertility sector. Monash IVF provides assisted reproductive services, including IVF, and operates a network of clinics and related services. The company aims to help individuals and couples achieve their dreams of having a family.
The non-binding bid, structured as a scheme of arrangement, valued Monash IVF at 7.7 times its forecast FY25 EBITDA. According to the board, this multiple represents a “substantial discount” when compared to recent transactions involving other Australian IVF businesses. The consortium, which already possesses a 19.6 per cent stake in Monash IVF, also raised the possibility of allowing shareholders to roll their existing equity into an unlisted private entity.
Following a review of the proposal with its advisors, the Monash IVF board unanimously rejected the offer. The board cited the conditional nature of the proposal, the significant undervaluation, and uncertainties surrounding the consortium’s financing as key reasons for the rejection. Chairman Richard Davis stated that the timing and pricing of the offer “materially undervalue the company.”
Monash IVF has engaged Macquarie Capital and Clayton Utz as advisors and has advised shareholders to take no action at this time. The company has indicated it will consider any future approaches that offer “compelling value” to its shareholders.
