VoIP provider Engin (ASX:ENG) has revealed that its majority shareholder, Network Investment Holdings, has withdrawn what was effectively a takeover offer for the company.
Network Investment, a subsidiary of Seven Group Holdings, (ASX:SVW) had requested a special shareholder meeting to vote on a proposal to cancel every Engin share it does not hold in exchange for $0.70 in compensation to the owners.
Under the proposal, Engin would have then become a direct subsidiary of Network Investment.
But Engin on Thursday disclosed that Network Investment had now withdrawn its request for the meeting, originally scheduled for 31 January.
At the time the offer was made, Network Investment owned around 57 per cent of the VoIP company. Engin shares were also trading at above the offer price.
But the Independent Expert Engin had hired to look over the proposal had concluded that the offer was reasonable, and that if it was not taken there was a danger of the share price falling below $0.70.
ENG's share price has since fallen below $0.70, and remained there for most of January. On Thursday, the shares fell 0.73 per cent to $0.680.