Monash IVF shares spike 39% after rejecting Soul Patts, Genesis Capital takeover
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More news: Monash IVF has seen its share price spike after rejecting an 80 cents per share non-binding indicative offer from Genesis Capital Investments and Washington H. Soul Pattinson, which the fertility clinic operator's board believes is a material undervaluation.
At 10:36am AEDT, shares in Monash IVF had lifted 38.5% to 84 cents per share although the stock is down 32.9% in the year to date.
Monash IVF rejects ‘opportunistic’ takeover bid from Soul Patts, Genesis Capital
The news: Monash IVF Group has rejected a non-binding indicative offer from a consortium of Genesis Capital Investments and Washington H. Soul Pattinson to acquire the fertility clinic operator amid a turbulent year that has seen its share price roughly halve.
The numbers: The offer price of the deal was 80 cents per share, higher than the last close price of 61 cents per share on 21 November. In the year to date, Monash IVF’s share price has fallen 51.6%.
The consortium currently holds 19.6% of the shares in Monash IVF.
The context: Monash IVF told the exchange that the offer price implied an “[enterprise value]/underlying FY25 EBITDA multiple of 7.7x which is a substantial discount to comparable IVF transactions in the Australian market”.
The board considered the proposal with financial adviser Macquarie Capital and legal adviser Clayton Utz. The proposal had sought a period of exclusive due diligence and indicated that further detailed exclusivity terms would be shared by the consortium separately.
Earlier this year, Monash IVF had revealed two instances of transplanting the wrong embryo into a patient. The company also revealed a weak FY26 outlook at the time of its FY25 results.
The company’s CEO left in the wake of these incidents. Healthscope chief medical officer Victoria Atkinson will be the new CEO from 18 May 2026, with Malik Jainudeen acting in the role in the interim.
The company is looking for a new acting chief financial officer to fill the vacancy left by Jainudeen and since Andrew MacLachlan finished in the interim role on 21 November.
What they said: “The Monash Board in consultation with its advisers has formed the view the proposal in its current form is opportunistic in its timing and materially undervalues the Company,” Monash IVF chair Richard Davis.
The source: ASX
