The McPherson's Ltd (ASX: MCP) share price had a doozy today. McPherson's shares fell a nasty 15.22% today to $1.22 by the end of trading.
That came after the health and beauty company closed at $1.44 per share last week and opened at $1.22 this morning. This means the company has lost its slender gain for 2021, and the shares are now down 14.34% year to date. The company is also down 56.25% over the past 12 months.
So what went wrong today?
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McPherson's many suitors
The fall in the McPherson's share price can probably be blamed on an ASX release to investors before market open.
In this release, McPhersons advised the takeover proposal the company received in April from Arrotex Australia Group Pty Ltd will not be going ahead.
Back in April, McPherson's announced Arrotex had put forward a "non-binding, indicative proposal" to acquire 100% of McPherson's shares at a price of $1.60 per share. The offer was an all-cash one.
Prior to that, McPherson's had received a different offer, this one from Gallin Pty Ltd. Gallin put up an offer of $1.40 per share. However, the McPherson's board advised shareholders to reject this offer.
Earlier this month, McPherson's gave investors an update on the Arrotex proposal. It noted the following:
The Arrotex Indicative Proposal is conditional upon completion of satisfactory due diligence to be undertaken over a four-week period pertaining to accounting, financial, legal and key operational areas, and a number of other customary conditions.
Well today, here's what McPherson's had to say on the proposal from Arrotex:
After providing Arrotex with the agreed four-week due diligence period, the board wishes to advise that the parties have agreed to cease due diligence and Arrotex has withdrawn its indicative proposal.
So close perhaps, but no cigar.
Wedding called off
Here's some of what McPherson's CEO Grant Peck said on the outcome:
Following today's announcement in respect of Arrotex, I now look forward to working with the board to continue to implement the outcomes of our operational review announced on 19 May 2021.
We have a clearly defined strategy and are focused on its execution to deliver significant value to our shareholders in the short and long term… The McPherson's team will continue to focus its attention on delivering our health, wellness and beauty strategy.
At today's closing share price, McPherson's has a market capitalisation of $156.75 million, a price-to-earnings (P/E) ratio of 92.04 and a trailing dividend yield of 8.57%.
