Ceasing coverage of Sirtex
Recommendation
The Federal Court has approved Sirtex Medical's Scheme of Arrangement under which Chinese fund manager CDH Investments and China Grand Pharmaceutical will take over Sirtex at $33.60 per share (see Sirtex sides with China). This was the final hurdle for the buyout, so Sirtex will be delisted from the ASX tomorrow.
Shareholders on the share register on 17 September (the record date) will receive $33.60 in cash on the implementation date, which is currently expected to be around 20 September. The stock has risen 20% since we recommended you Sell seven months ago when the company received its first takeover offer by Varian Medical Systems (see US heavyweight bids for Sirtex Medical).
We left some money on the table but it's hard to be disappointed with the fivefold increase in share price between our Sell recommendation and initial upgrade on 8 Nov 10 (Speculative Buy - $5.90). We wish Australia's biggest cancer therapy maker every success under its new owners. CEASING COVERAGE