Volpara Health Technologies has received an all cash takeover...

Volpara Health Technologies has received an all cash takeover bid from Korean company Lunit at $1.15 per share, an offer that the Board finds in the best interests of shareholders to accept. The company's two largest shareholders have indicated they will vote in favour of the offer.

Bell Potter points out the bid is a 47.4% premium to the previous closing price, valuing Volpara Health Technologies at $296m. The broker expects a counter bid is unlikely, feeling an absence of significant scale and rapid growth will be barriers to a competing bid.

The rating is downgraded to Hold from Buy and the target price increases to $1.15 from 85 cents.

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Personally, I've owned Volpara since 2018 with an average buy price of $1.55, and I've been unwilling to average down. Although, I have been gaining renewed faith in the company under Terri Thomas. This has been a disappointing investment from a returns point of view however I am happy to have played a very small part in combating breast cancer.