Shares in Vocus Group (VOC.AU) slumped 16% on Monday after saying that takeover discussions with Kolhberg Kravis Roberts and Affinity Equity Partners had ended. Both private equity firms had lodged rival bids of AU3.50 a share for Australia’s fourth largest telecommunications company.
The company said both suitors were “unable to support a transaction on terms acceptable to the Board”.
Vocus Chairman David Spence said:
“The Board’s focus continues to be to act in the best interests of all shareholders. Following the receipt of the initial, indicative proposals from the two parties, we believed it was in shareholders’ best interests to grant those parties the opportunity to conduct non-exclusive due diligence. Throughout this process the Company continued to pursue its standalone business plans and its transformation program outlined at the Company’s recent investor day in June. The process with the Bidders has now concluded and the Board is looking forward to working with management to deliver improved returns for shareholders over the medium and long-term future.”
Vocus last traded 16% down at AUD 2.69 a share. The stock is down 30% year-to-date.
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