Tuesday, October 6th12.3°C

Sterigenics raises offer for Nordion to US$805 million or US$13 per share

OTTAWA - Medical isotope supplier Nordion Inc. (TSX:NDN) said Monday that Sterigenics has raised its takeover offer to US$805 million after an earlier offer failed to garner enough shareholder support.

The bid of $13 per share is up from $12.25 per share and the second increase to the offer, which began at $11.75.

Shareholders were to vote on the earlier offer last week, but the meeting was postponed after it became apparent the deal wouldn't receive the required two-thirds majority approval.

"Although a clear majority of Nordion shareholders supported Sterigenics’ all-cash acquisition proposal at US$12.25 per share, there did not appear to be sufficient shareholder support to approve the transaction," the company said in a statement.

Shareholders are expected to vote Friday on the new offer by Sterigenics, an affiliate of Chicago-based private equity firm GTCR LLC.

Nordion is a leading suppliers of medical isotopes, used for certain types of medical imaging. It also provides sterilization technologies for several industries.

The new offer follows an unsolicited offer of $12.50 last week from an unidentified third party that had earlier made an offer of US$12.25, Nordion said.

Nordion also reported Monday that it had a second-quarter profit of $6.7 million or 11 cents per share, up from a profit of $731,000 or a penny per share a year ago.

Revenue for the quarter ended April 30 totalled $74.7 million, up from $56.1 million in the same three months a year earlier.

On an adjusted basis, Nordion said it earned $13.5 million or 22 cents per share for the quarter, up from $4.8 million or eight cents per share in the second quarter last year.

The company settled a bitter legal fight with Atomic Energy of Canada Ltd. last year with a new supply deal that will run until October 2016 and an agreement by both sides to drop more than $100 million in claims.

A shortage of medical isotopes occurred around the world when AECL's NRU reactor was shut down in 2009 because of a leak that took more than a year to repair.

The shortage raised concerns about the availability of medical tests and Ottawa's decision to end the Maple program, an over-budget-and-behind-schedule plan to replace the NRU reactor.

The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX13647.26+95.06
S&P CDNX538.69+8.78
S&P 5001979.92-7.13
CDN Dollar0.7676+0.0004
Natural Gas2.456-0.014

Okanagan Companies
Pacific Safety0.21-0.01
QHR Technologies Inc1.25+0.03
Metalex Ventures0.05-0.01
Russel Metals23.31+0.80
Copper Mountain Mining0.56+0.06
Colorado Resources0.07-0.01
ReliaBrand Inc0.0031-0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.085-0.010
Decisive Dividend Corp3.06-0.43
Diamcor Mining0.90+0.00


22396952127 Louie Drive
more details
Click here to feature your property
Please wait... loading

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...



Member of BC Press Council