An Australian company that has made groundbreaking developments in the treatment of liver cancer has agreed to a 1.40-billion- U.S. dollar takeover bid on Friday, from China Grand Pharmaceutical (CGP) and Healthcare Holdings and CDH Genetech.
With around 20 billion U.S. dollars in capital, CDP operates as an asset fund manager while its strategic partner CGP develops, sells and distributes raw medical materials and healthcare products.
Together, their partnership will purchase all of the Sirtex's shares at a cost of 33.60 Australian dollars (25.10 U.S. dollars) per share.
But also in the race to secure the Aussie firm, was the United State's Varian Medical Systems.
Although Sirtex's board recently supported a bid from the U.S. company that offered 28 Australian dollars (20.92 U.S. dollars) per share, CDH-CGP later came to the table with a better offer.
"The board has undertaken a comprehensive investigation of the merits and risks of the CDH-CGP proposal, including seeking specialist advice in relation to specific regulatory, legal, funding and other risks," Sirtex interim chairman Dr. John Eady said.
"Based on the materially higher offer price and our evaluation of the associated risks, the board of Sirtex has formed the unanimous view that the CDH-CGP proposal is a superior proposal and is in the best interests of shareholders."
Although the deal has been agreed to by the board, Sirtex's shareholders will still have to vote on the matter.
The other hurdles the takeover faces is approval from Australia's Foreign Investment Review Board, along with consent from the U.S. Federal Trade Commission due to the extensive scale of Sirtex's business dealings in the U.S.
Operating in 1,090 hospitals, Sirtex distributes radiation therapy treatments in 40 countries across the world.
At 15:30 local time, Sirtex share price soared by 4.76 percent to 31.05 Australian dollars (23.20 U.S. dollars) per share.