Hyro has called off negotiations over a potential buyout after the bidder failed to formalise a purchase agreement.
In a statement to the ASX today, the digital services agency said talks had been suspended following months of negotiations after the interested party advised they were not in a position to execute the offer.
The unnamed bidder blamed an internal reshuffle to both the board and CEO for its inability to sign the deal.
Both companies were in the final stages of negotiations when the potential takeover was suspended. Late last month Hyro was placed into a trading halt ahead of an announcement expected for last Thursday.
Hyro revealed it had been offered $0.60 a share - a 30 percent premium on the price when trading was halted - valuing the company at around $16 million.
The Victorian agency last December revealed it had commenced talks with an unnamed global competitor regarding a possible takeover, and in February described the deal as "imminent".
Hyro CEO Anthony Poiner told CRN Hyro would be "duty bound" to accept a future offer from the unnamed bidder.
"They may well come back, they have certainly indicated a desire to do so," he said. "They remain interested. And there have been no points of disagreement between us in commercial terms."
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Issue: 315 | May 2013
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