Investors wiped more than $300 million off the market value of OzForex after the money transfer company abandoned takeover talks with global rival Western Union, and slashed its annual earnings guidance.
OzForex says it terminated discussions after Western Union failed to submit a binding proposal to buy the company.
In November, the company granted an exclusive due diligence period to Western Union to push forward with its preliminary and non-binding offer of between $3.50 and $3.70 a share, valuing OzForex up to $888 million.
"Although discussions continued for some months, Western Union has not submitted a binding proposal. Accordingly, the board of OFX has terminated discussions with Western Union," OzForex said in a statement on Monday.
Western Union, which is based in the United States, wasn't immediately available to comment.
Shares in OzForex dropped 41.2 per cent to a record low of $1.815 in morning trade, with the company's value slashed to $435 million compared to $741 million on Friday.
The stock closed down $1.30, or 42.07 per cent, at $1.79.
News of the failed takeover talks came as OzForex cut its earnings guidance for fiscal 2016 to between $35.0 million and $37.0 million, down from its previous guidance of $38.5-$40.5 million.
The Sydney-based company blamed the cut on a reduction to its advertising spending associated with its brand in Australia ahead of its rebranding and move to a new website.
"The resulting lower client acquisition levels, combined with decreased volatility in the FX (foreign exchange) markets reduced the level of trading activity from both new and existing active clients compared to expectations," OzForex said.
Fee and commission income for three months to December 31 rose nine per cent from a year earlier, but was below expectations.
Sill, OzForex reiterated its revenue growth target to double 2015 revenues by 2019 to more than $200 million.
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