AUB Group shares plunge after EQT and CVC pull takeover offer
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More news: AUB Group shares tanked in morning trade after the insurance broker terminated discussions with private equity suitors EQT and CVC Asia Pacific.
AUB shares were down 16.7% to $31.02 at 11:20am AEDT.
The talks ended after EQT and CVC told AUB that they did not intend to proceed with a binding proposal at the $45-per-share offer price after undertaking exclusive due diligence.
AUB Group terminates takeover talks with EQT and CVC Asia Pacific
The news: Insurance broker AUB Group has terminated discussions with EQT and CVC Asia Pacific, after the private equity suitors pulled their joint bid for the company.
The context: The decision came after EQT and CVC, which had been undertaking exclusive due diligence on AUB, told the target they did not intend to proceed with a binding proposal at the offer price of $45 per share.
AUB shares last closed at $37.25.
The offer by Swedish private equity fund EQT was first announced in October, before forming a consortium with CVC in November.
What they said: "The recent due diligence process, while demanding, has reaffirmed our confidence in our improvement initiatives and long-term growth prospects," said AUB's chief executive and managing director Michael Emmett.
"Now that discussions with the consortium have ended, our board and management team are fully focused on advancing our portfolio of organic growth initiatives and acquisition opportunities."
The source: ASX
