Shares in Australia’s largest funerals group InvoCare plummeted almost 17% at one stage on Monday after US private equity group TPG abandoned its $1.8 billion offer – possibly for the time being, to return a little down the track.
Media reports revealed the move before trading started on Monday and the release of the official TPG statement that killed off its $12.65 a share pitch.
InvoCare shares ended Monday down 9% at $11 after the shares bounced off their early lows on expectations the deal isn’t over.
TPG, though, wants a seat on the InvoCare board because it owns almost 20% of the shares nominated for Goldman Sachs banker, Genevieve Gregor as their candidate.
InvoCare says it has been advised by TPG that the bidder has withdrawn its proposal, but that the board “remains willing to consider any proposal that represents fair value in the interests of all shareholders”.
The withdrawal came nearly three weeks after TPG produced its surprise offer.
InvoCare denied TPG full due diligence at the time of the offer in early April, saying the proposed deal did “not provide compelling value for InvoCare shareholders”.
Today, InvoCare says TPG has walked away despite an olive branch being offered by the funeral services provider that owns brands including White Lady Funerals, Simplicity Funerals and Value Cremations.
“As previously announced, the Board of Directors of InvoCare unanimously concluded that the Indicative Proposal did not provide compelling value for shareholders and therefore access to full due diligence would not be granted to TPG,” InvoCare said.
“InvoCare offered TPG the opportunity to access limited, non-public financial information on a non-exclusive basis, to assist TPG to formulate a revised proposal.
“TPG did not sign a customary confidentiality agreement to access this information nor provide InvoCare with a revised proposal to consider,” InvoCare said in its release.
Analysts say TPG has given itself wriggle room to return later this year, if it wants to.
