The Virtus Health Ltd (ASX: VRT) share price is currently halted after the company requested a trading pause before the market open today.
Virtus Health shares have posted solid gains so far in 2022, having shot up more than 26% over the previous 12 months of trading.
The $658 million company by market cap is also trading at its highest levels in more than five years and has thrust past its 52-week closing high during the past week or so (see below).
A quick refresher
Presumably, Virtus requested the pause in lieu of a market-sensitive announcement. It suggested this is related to the takeover saga it is currently embroiled in.
For reference, Virtus is the subject of competing takeover offers made by BGH and CapVest Partners LLP. The Virtus Health share price jumped on the news of the CapVest offer on January 20.
Just yesterday the Australian Government Takeovers Panel (AGTP) made declarations on previous orders it had made with respect to CapVest’s takeover proposal of the company.
It found “certain aspects of the exclusivity arrangements in a process deed between Virtus and CapVest had an anti-competitive effect”, and made orders to amend the deed.
After review, Virtus opted to still side with CapVest’s offer, something that BGH apparently became frustrated with.
“BGH submitted that, notwithstanding the clear intent of the Orders, the circumstances were continuing to unacceptably frustrate a proper auction process or competitive bidding environment,” the AGTP said.
“It submitted that this was evidenced by Virtus disclosing the Revised BGH Proposal to CapVest, CapVest matching or improving its existing proposal and the Virtus board then dismissing the Revised BGH Proposal in preference to continuing to deal exclusively with CapVest.”
However, the AGTP declined to comment on the matter and found no reason to conduct proceedings after its final review.
Why is Virtus on ice?
The company was granted the halt following a request made to the ASX today. Before being placed on ice, Virtus Health shares finished the day flat on Thursday at $7.70 apiece.
It says the trading halt is “necessary as the company expects to make an announcement to the market in relation to ongoing matters pertaining to proposals to acquire Virtus Health”.
“Virtus requests the trading halt to last until the earlier of the time it makes the intended announcement to the ASX concerning the material potential transaction, or until the commencement of trading on Tuesday 15 March 2022.”
Prior to the halt, Virtus finished the month well, after its share price made several steps up the ladder to set new single-year highs.
Virtus Health share price snapshot
In the past 12 months, the Virtus Health share price has climbed more than 26% and is up 12% this year to date. Over the past month, shares have walked another 5% into the green.
In fact, the company’s share price is up across all major time frames and is thus leading the broader market this year to date.
The post Why is the Virtus Health (ASX:VRT) share price frozen today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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