Shares in NIOX Group (LSE:NIOX) slumped 21% in early trading on Friday after private equity firm Keensight Capital walked away from a potential takeover, citing “prevailing macroeconomic conditions".
The decision bars Keensight from making a further bid unless circumstances change.
NIOX’s board has also pulled the plug on its broader private sale process, saying market conditions make it unlikely to deliver a good outcome for shareholders.
The group, which makes devices to measure airway inflammation, said it had seen 18% sales growth in the first quarter and held £15.4 million in net cash at the end of March.
The stock fell 14.6p to 55.8p.