Australian testing services provider ALS Ltd (ALQ.AX) rejected an A$2.67 billion ($1.93 billion) takeover proposal from private equity firms Advent International and Bain Capital, saying its board felt the offer significantly undervalued the company.

Under the proposal, Advent and Bain would provide cash consideration of A$5.30 per ALS share, which represents a 31 percent premium to its pre-offer closing price. ALS, in a statement on Thursday, called the proposal “highly conditional” and “non-binding”.

“The board believes that the timing of the approach is opportunistic and made at a time when ALS is strongly advancing its growth strategy in its life sciences business,” ALS said.

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