IVF giant again in play after new bid pumps up shares
Kaaren Morrissey |
Australia’s second-largest fertility services provider has about a week to think over a takeover offer valuing the group at almost $100 million more than it is now.
Shares in Monash IVF, which has an assisted reproduction market share of about 19 per cent, bounced by almost 16 per cent to 77 cents on Monday after the bid was revealed.
The would-be predators are offering 90 cents, well above the stock close on Friday at 66.5 cents, when Monash IVF had a market value of almost $260 million.
It’s not the first time investment vehicle WHSP Holdings and private equity group Genesis Capital have cast their eyes over Monash IVF.
They first pursued the target in November, when Monash IVF was under pressure over an embryo implant scandal.
A patient at a laboratory in Melbourne’s southeast was implanted with her own embryo on June 5 rather than one from her partner, as requested.
The company later blamed human error and IT limitations for the incident.
Then, WHSP and Genesis offered 80 cents per share for all the stock in Monash IVF, which has struggled to trade above 90 cents for more than 12 months.
Its most recent high was $1.23 in February 2025, although it has previously traded close to $1.50.
On Monday afternoon, the stock had fallen back from its intraday high to 76 cents, up just over 14 per cent, valuing the group at about $350 million.
The bidders, who hold 19.6 per cent of Monash IVF’s shares, told the company their offer is valid until April 21.
At the same time, they want exclusive access to Monash’s books and the unanimous recommendation of the board.
Monash IVF said the approach was unsolicited, conditional and non-binding.
“The Monash IVF board is assessing the proposal, including obtaining advice from its financial and legal advisors,” it said in a statement.
“It should be noted that there is no certainty that the discussions with the consortium will result in any transaction.
In April 2025, Monash IVF also revealed a woman at a Brisbane facility had another patient’s embryo incorrectly implanted in 2023 because of human error.
It meant the woman gave birth to a stranger’s baby.
That and the Victorian bungle sparked an independent review headed by leading barrister Fiona McLeod, which has since been completed, but its full contents haven’t been disclosed.
About 20,000 babies conceived by IVF are born in Australia each year, according to the latest figure from the Australian and New Zealand Assisted Reproduction database.
This represents about one in 18 children, rising to one in 10 for those born to mothers aged 35 and older.
AAP