McMillan Shakespeare has called off its $911 million takeover of Eclipx Group following a dismal trading update from its administrative services peer.
McMillan said on Wednesday it did not believe it would be possible to complete the proposed scheme with Eclipx and declined to extend the April 30 end date.
In its trading update for the first five months of the 2019 financial year, Eclipx said its net profit for the period had plunged 42 per cent.
It also declined to provide updated full-year earnings guidance, citing uncertainties in its operating environment.
Eclipx also noted that McMillan had rejected its request to extend the end date for the takeover, and said that it was unlikely to proceed.
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Eclipx shares plunged more than 50 per cent following the trading update and McMillan's decision.
