Hulamin’s share price lost almost a third of its value in the immediate aftermath of announcing that a takeover offer has been withdrawn.
The company said it received the offer from a company in April last year. Its board said it believed that the potential transaction was beneficial to Hulamin, which produces a range of aluminium products.
"Following lengthy discussions and due process, the parties concluded on a deal price that was put forward by the offeror which was considered fair and reasonable to the shareholders by an independent board and which constituted a substantial premium to the current Hulamin share price," the company said in a statement.
A due diligence was completed to the company’s satisfaction.
However, the suitor was unable to agree satisfactory terms with all stakeholders, says Hulamin.
"In addition, the offeror has become concerned about recent global economic uncertainly."
It has therefore terminated discussions, Hulamin announced on Monday.
Its share price slumped almost 32% in response to the announcement. By early afternoon, it was down 26% to 370c. Its share price has almost doubled from a year ago.