Shares in Advanced Medical Solutions fell sharply on Monday after private equity firm TA Associates confirmed it would not proceed with a potential bid for the UK wound-care specialist, according to a report by Reuters.
The stock dropped as much as 24% in early trading before recovering slightly to trade down around 20% at 197.2 pence by mid-morning in London.
Advanced Medical Solutions, which develops and supplies wound-care dressing technologies, said it remained confident in its standalone strategy and long-term growth prospects despite the collapse of discussions. The company disclosed in April that it had entered talks with TA Associates regarding a possible takeover offer.
TA Associates did not provide an explanation for its decision to withdraw from the process.
The failed approach has prompted questions among market observers about why multiple private equity firms have shown interest in the business without ultimately pursuing a transaction. Analysts at Panmure Liberum said investors are likely to scrutinise whether valuation expectations or concerns around the company’s outlook played a role in the decision.
Advanced Medical Solutions has previously attracted interest from buyout groups, including reported attention from Bridgepoint.
