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Yes - those who bought the lows certainly smiling today. Not so happy anyone who bought when the SP was circa $40.

 

SIRTEX BOARD UNANIMOUSLY RECOMMENDS ACQUISITION

PROPOSAL FROM VARIAN MEDICAL SYSTEMS, INC

ï‚· Acquisition price of A$28.00 per share in cash

ï‚· Consideration represents an attractive premium to the pre-announcement share

price

ï‚· Sirtex Board unanimously recommends that Sirtex shareholders vote in favour

of the Scheme

 

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more likely a holder trying for an extra shave. Others waiting in the wings?

Sirtex chief executive Andrew McLean confirmed that New York listed Varian's all-cash offer was the highest from a range of indicative non-binding proposals for the biotech, ..... He said Sirtex engaged with several credible suitors, although the board never actively tried to sell the business.

 

"We had a healthy process," he told The Australian Financial Review. "We ran a comprehensive process to ensure the best outcome for shareholders. ...."

Read more: http://www.afr.com/business/health/biotech...d#ixzz55peOBrah

 

 

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If there are others waiting in the wings, then surely the price is expected to increase - as is the case with AWE. Why then short the stock, expecting the price to go down?

 

One market watcher who does not own the stock said the premium Sirtex received was "unbelievable" for a company that is "flat to declining", making it a great call to sell.

 

 

Morgans senior analyst Derek Jellinek said the soap opera of Sirtex is coming to an end with this bid, and does not expect a higher offer to emerge.

 

"The bid effectively ends what has been a roller-coaster ride for investors," he said. "Numerous clinical trials have failed, they wrote down millions in R&D and fired their prior CEO due to questionable trading and they are facing two class actions.

 

"We are surprised by the transaction, viewing Sirtex more as an acquirer rather than an acquiree. The offer is 30 per cent below the highest the stock reached about two years ago. However, Varian's multiple is quite substantial, valuing the company at about seven times sales or, on an EBITDA basis, 18 times. These are multiples we normally see with biotech companies that are driving growth, so we see it as a net/net win for shareholders given those transaction multiples."

Read more: http://www.afr.com/business/health/biotech...d#ixzz55qNgWMt1

 

 

 

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  • 3 months later...

Sirtex in trading halt over developments on CDH takeover offer

 

"The trading halt is requested pending the release of an announcement on material developments in the proposal from CDH ," Sirtex said in a statement on Tuesday.

 

The company has been facing shareholder class actions relating to a December 2016 downgrade of its sales growth forecasts for its microspheres, which are used to treat some cancers. The two class actions, which involve a 37 per cent fall in share price on December 9, 2016, were recently consolidated into one by the Federal Court.

 

Separate to the class action, its former chief executive, Gilman Wong, is also being investigated by the Australian Securities and Investments Commission over trades he made in the troubled biotechnology group's shares ahead of a profit downgrade. Mr Wong has denied any wrongdoing.

The company last year paid a penalty of $100,000, without any admission of liability, after being issued with an infringement notice by ASIC for allegedly breaching its continuous disclosure obligations to shareholders.

https://www.shortman.com.au/stock?q=srx

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