China’s CDH Investments has made a $1.87 billion offer to acquire Australian cancer treatment specialist Sirtex Medical, trumping a previous takeover bid by United States-based Varian Medical Systems.
Sirtex announced to the ASX today that the Chinese funds management group, which has more than $US20 billion of capital under management, had made an unsolicited offer to acquire Sirtex, at a price of $33.60 per share.
The offer price was made at a premium to Sirtex’ last closing share price of $29.42.
Varian had offered 28 cents per Sirtex share, equating to a valuation of $1.6 billion.
Sirtex said the proposal remained subject to a number of conditions, including approval by CDH’s investment committee and formal documentation.
The deal would also be subject to approval from Australia’s Foreign Investment Review Board.
While CDH’s bid provided a higher value to shareholders, Sirtex’ board of directors remained in support of the Varian offer.
“At this time the directors of Sirtex continue to believe the existing scheme of arrangement with Varian is in the best interests of Sirtex shareholders and continue to unanimously support and recommend the scheme,” the company said in a statement.
Sirtex specialises in medical devices, with its core technology a selective internal radiation therapy with clinical proven applications for liver cancer.