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Sirtex Medical surges 45% on back of Varian's circa $1.6 billion cash takeover offer

Sirtex Medical surges as Litigation Capital Management spikes 20%.
ASX markets on computer screens
The ASX continues to recover this morning's losses, it is now in positive territory

Sirtex Medical Ltd (ASX:SRX) was the big gainer on the ASX this morning as its shares surged 45% to hit a high of $27.70, triggered by a takeover offer of $28.00 per share.

The company has entered into a binding scheme implementation deed with Varian Medical Systems, Inc (NYSE:VAR).

It is proposed that Varian will acquire all of the shares in Sirtex by way of a scheme of arrangement for $28.00 per share in cash.

Cash offer with basic conditions

Varian is headquartered in Palo Alto, California and the US$11.8 billion company is a leader in developing and delivering cancer care solutions.

Sirtex said it had received multiple unsolicited non-binding proposals leading up to accepting Varian’s offer.

However, with a cash offer subject to basic conditions such as receiving an independent expert’s opinion, and an implied value of circa $1.6 billion, this represents a significant premium.

Olivers quick to impress

Oliver's Real Food Ltd (ASX:OLI) only listed on the ASX in mid-2017 after raising $15 million, but investors were impressed with its result for the three months to December 31, 2017.

The company’s shares increased 25% to hit a high of $0.29 before retracing slightly in afternoon trading.

Year-on-year same-store sales growth of 5.7% was ahead of the prospectus forecast of 5.1%.

Cash receipts for the period were $10.5 million resulting in net operating cash inflow for the quarter of $1.8 million, compared to $7.7 million and $5,000 respectively in the September quarter.

Settlement of three litigation projects buoys Litigation Capital   

Litigation Capital Management Limited (ASX:LCA) reached settlements in relation to three of its litigation projects.

The projects were inter-related and the delay in the completion was the basis for the company not meeting its FY17 IPO forecast.

Notwithstanding the associated delay in revenue recognition, the results of this settlement are said to be ‘significantly better’ than the FY17 IPO forecast.

On the options front, Greenland Minerals and Energy Ltd’s (ASX:GGG) options (ASX:GGGOB) increased 22% to $0.039.

READ: Greenland Minerals and Energy simplified rare earth refining will boost economics

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Sirtex Medical Ltd Timeline

January 31 2017

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