Private equity firm EQT has walked away from its $3.3 billion takeover bid for Vocus Group.
Vocus released a statement to the market tonight saying talks between EQT and the company have now ended.
The company (VOC) announced the receipt of a bid from EQT Infrastructure on May 27 at $5.25 per share subject to due diligence.
“Following an accelerated period of due diligence, EQT has decided not to proceed with the transaction outlined in the Indicative Proposal,” Vocus said.
“Accordingly, discussions with EQT in relation to the Indicative Proposal have now ceased.”
Vocus chief Kevin Russell, said the group was in the early stages of a business turnaround.
“We have great confidence that our strategy will deliver significant value to our shareholders in the medium to long term,” he said in a statement.
“There is growing demand for our strategically valuable network assets and we have a substantial opportunity to gain market share in Vocus Networks, which is the core of our business.”
Vocus announced at its interim results that it intended to conduct a strategy update for investors.
“This will now be scheduled for the last week of June.”
Mr Russell also reiterated the group earnings guidance, with underlying earnings before interest, tax, depreciation and amortisation expected to be between $350m and $370m.
Vocus shares closed at $4.58.
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