Australia: Varian’s Sirtex bid beat by China’s CDH

Sirtex Medical Limited (Sirtex), known for its cancer drugs, announced on May 4 in the press release that the company had received an unsolicited non-binding and conditional proposal from CDH Investments, a China-based alternative asset manager, for the acquisition of all of the issued shares in Sirtex. The CDH proposal is subject to a number of conditions following completion of satisfactory confirmatory due diligence, notably the approval of CDH’s Investment Committee and the Australian Foreign Investment Review Board.

CDH’s last minute offer came in a 20% over Varian’s offer of AU$28 (US$21.11) per share.

In line with their fiduciary duties, the Sirtex board of directors has determined to engage with CDH Investments to further understand the conditions associated with the CDH Proposal. In light of these developments, Sirtex intends to seek an adjournment of the meeting of Sirtex stockholders to approve the Scheme Implementation Deed between Sirtex and Varian, which was scheduled to occur on Monday, May 7, 2018, to a time and date to be determined.

In connection with this, Varian reiterated its belief that its proposal remains in the best interests of Sirtex and its stockholders.

“The Varian Scheme has been unanimously approved by both boards of directors, has fully committed financing and has received all necessary regulatory approvals. We believe the Varian Scheme offers more value and carries far less risk for Sirtex stockholders,” said Dow Wilson, President and Chief Executive Officer of Varian. “We stand ready to complete the acquisition following the receipt of Sirtex stockholders’ approval and the satisfaction of other closing conditions. We look forward to welcoming our new Sirtex colleagues to Varian.”

Full Content: Reuters

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