An Asian private equity firm is believed to be eyeing on Monash IVF Group for a potential takeover as the company’s market value languishes way below its highs of almost $600 million about a year ago.

It is understood the suitor has an interest in the Monash Company as part of a wider plan to roll up IVF healthcare operations in the Asia Pacific region as their future venture.

The expectation is that the company would likely have Morgan Stanley or Macquarie Capital on hand as defence advisers given the banks advised Monash on its initial public offering.

Monash declined to comment yesterday and it is unclear whether the suitor has engaged with management or the board.

The interested party is said to be Asian-backed and has not been working with an investment bank.

Its eagerness to buy Monash comes as demand for skills in healthcare remains strong from Chinese parties eager to capitalise on the intellectual property they want to bring back to China. Monash listed as a company in 2014 with a $427.5m market value after a $315.9m raising as part of a move by private equity firm Ironbridge to sell out of the operation.

Its equity value was near to $ 600m last year but the company is now worth about half of that and the theory around the market is that it remains undervalued.

Even more curious is that the company is yet to announce a replacement for managing director James Thiedeman, who resigned unexpectedly in May.

Last month, the group reported a $29.6m net profit for the year to June, beating the $28.8m it posted for the previous corresponding period.

Monash is under the spotlight as suitors remain in the contest to buy the $1 billion radiology provider I-Med.

First round bids for the company were due yesterday and so far the Morgan Stanley-run contest has attracted mainly private equity firms, with at least one bidder from Asia said to be still in the competition.

Affinity Private Equity is vying for the company, as are Pacific Equity Partners, TPG Capital and the Carlyle Group


News & Image Resource – The Australian-Business Review – October 4, 2017