SRX - Sirtex Medical

[luutzu]

According to Varian, the offer might take that long because of all the hurdles and paperwork.

Is that what Varian in their letter of not competing with the Chinese?

I thought the Varian offer got approved by FIRB, finished their due diligence etc. in only a couple of months. It was due to be voted on and settled by mid June [some 3 months?] after initial bid.

Not sure why the Chinese bid would take until next year.

 

[Knobby22]

Is that what Varian in their letter of not competing with the Chinese?

I thought the Varian offer got approved by FIRB, finished their due diligence etc. in only a couple of months. It was due to be voted on and settled by mid June [some 3 months?] after initial bid.

Not sure why the Chinese bid would take until next year.

Yea, maybe scuttlebutt. Anyway we shall get the recommendation from the Sirtex Board soon. the low share price seems to suggest that investors are thinking that they might not pursue the new offer.

 

[luutzu]

Yea, maybe scuttlebutt. Anyway we shall get the recommendation from the Sirtex Board soon. the low share price seems to suggest that investors are thinking that they might not pursue the new offer.

Just re-read the offer from CDH again and it seem a lot superior to Varian.

There's the higher price of $33.60 vs $28 [20% higher].

$200M to Sirtex's account when they enter into the agreement. If FIRB and its US version etc. were to reject the takeover, Sirtex get to keep the $200M [I think I read that right].

Keeping it meann giving CDH and its partner exclusive commercialisation rights in China. That's not a bad thing, possibly a very good deal in that foreign operators always need a Chinese partner when they want to enter China.

Deustche bank just add another 1% to their 6.25% [?] holdings of Sirtex.

But yea, too many trade wars and political pressure it's hard to predict these things. That and what the heck do I know

 

[Knobby22]

That and what the heck do I know

Me too.

 

[Faramir]

Rightly or wrongly, on Fri 1 June 2018, I sold my tiny 244 shares for $29.59. I need money. I brought my first 112 shares Mar 2015 @ $17.75 and my second 132 shares @ $15.21 Jan 2017.

Besides needing money desparately for partner health reasons. This announcement got to me.

https://www.asx.com.au/asxpdf/20180522/pdf/43v6w9kwn7b064.pdf

Especially page 2, where they said they were distracted from selling more doses due to the takeover??? That's. It an excuse! Also Allan Gray stopped being a substantial holder. I know CDH offer $33.60. Yes I have been ripped off $942 - I should have waited until I don't know when?? How many months???

After selling, I felt so (I can't explain it???) Maybe relief that I didn't make a loss?? Maybe ripped off for being a bit impatient??? I felt that this sale was a fluke. Whether I'm right or wrong, I will pay a doctor bill or two and then find another company????

@craft - are you still in SRX??

 

[luutzu]

Rightly or wrongly, on Fri 1 June 2018, I sold my tiny 244 shares for $29.59. I need money. I brought my first 112 shares Mar 2015 @ $17.75 and my second 132 shares @ $15.21 Jan 2017.

Besides needing money desparately for partner health reasons. This announcement got to me.

https://www.asx.com.au/asxpdf/20180522/pdf/43v6w9kwn7b064.pdf

Especially page 2, where they said they were distracted from selling more doses due to the takeover??? That's. It an excuse! Also Allan Gray stopped being a substantial holder. I know CDH offer $33.60. Yes I have been ripped off $942 - I should have waited until I don't know when?? How many months???

After selling, I felt so (I can't explain it???) Maybe relief that I didn't make a loss?? Maybe ripped off for being a bit impatient??? I felt that this sale was a fluke. Whether I'm right or wrong, I will pay a doctor bill or two and then find another company????

@craft - are you still in SRX??

Money in your pocket, and at a profit, is never a wrong call I reckon
Can't make all the money in the world... and getting out now for emergency/needing the cash and going above a more certain offer price... that's quite sensible regardless what happen.

Allan Gray reducing his holdings could just be being responsible. Taking a substantial profit with some [?] still on the table for more, or not exposed enough if it were to go south... quite clever without really implying that the business or the takeover is shaky.

 

[Knobby22]

Yes, and it will be a long wait I think.

 

[luutzu]

Woohooo.

$33.60 offer got accepted/recommended.

The Board's rationale that those condition precedents - FIRB etc. - should be approved sounds reasonable enough to me.

But even if it falls through, SRX would still get to keep $200M+GST, and a partner to conquer the Chinese market with.

Sounds like a win-win for SRX shareholders.

 

[Faramir]

Damm, I made the wrong call to sell too soon. Anyway, I needed money last week.

 

[luutzu]

Damm, I made the wrong call to sell too soon. Anyway, I needed money last week.

That's just hindsight talking. And it's not over yet so might still be right.

But I think it was a very reasonable call, for what it's worth.

To make you feel better, I sold out my RIO holdings back last year intending to load up a bit more of SRX around that $10 to $11 market.

Sold RIO at about $60... SRX moved up ten or forty cents during settlement. I got greedy and thought I should waited for it to drop.

Didn't drop. I sat there with cash and watch as RIO goes to $80s.

Dam it!

Hope your partner is doing alright man.

 

[Knobby22]

Good news indeed.
We are going to get a 30c dividend and should see the money by September, I really thought November would be the earliest we could hope for.

 

[luutzu]

Good news indeed.
We are going to get a 30c dividend and should see the money by September, I really thought November would be the earliest we could hope for.

Was thinking... with all the trade wars going on, particularly between US/China. Wouldn't the US just block the takeover just to spite the Chinese?

I mean, event he Canadian are considered "national security threat" with their imports, forget about China getting their hands on nuclear anything right?

And if that were to happen... I suppose SRX will have to live with that additional $200M+GST and a partner into China.

 

[Knobby22]

Was thinking... with all the trade wars going on, particularly between US/China. Wouldn't the US just block the takeover just to spite the Chinese?

I mean, event he Canadian are considered "national security threat" with their imports, forget about China getting their hands on nuclear anything right?

And if that were to happen... I suppose SRX will have to live with that additional $200M+GST and a partner into China.

Such a small company and it has an Australian base, surely not?

 

[luutzu]

Such a small company and it has an Australian base, surely not?

Yea, true. Too small to bothered with.

Guess I was thinking on human scale where a few million is a lot of money.

 

[Knobby22]

I still haven't received the money. When are we supposed to get it?

 

[luutzu]

I still haven't received the money. When are we supposed to get it?

last thursday?

 

[Knobby22]

Not me. Hmmm.

 

[Knobby22]

Not me. Hmmm.

It went into my old Comsec account. [emoji1]

 

[McLovin]

My issue isn't with Wong selling shares – or the reasons for it – it's what the internal outlook for dose sales was at the time of the sale, beyond the vague forecast of "double digit growth continuing". Six weeks later, after he had offloaded his shares, they were able to firm up that forecast not just for the half year, but also the full year. Maybe I'm jumping at shadows, and as I said SRX has a pretty good corp governance record, but it's not a good look at all.

Turns out I wasn't jumping at shadows...

The corporate regulator has charged the former chief executive of Sirtex Medical Gilman Wong with one count of insider trading.

The Australian Securities and Investments Commission (ASIC) last year was investigating events at Sirtex that took place during the second half of the 2016 calendar year, including the sale of a parcel of 74,698 shares on October 26, 2016 by Mr Wong.

ASIC alleges that Mr Wong was in possession of inside information at this time.

Mr Wong, who apparently sold his shares to pay a tax liability, could now face a maximum prison sentence of 10 years if found guilty. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

https://www.afr.com/business/health...-charged-with-insider-trading-20180926-h15vt8

 

[System]

On September 24th, 2018, Sirtex Medical Limited (SRX) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between SRX and its shareholders in connection with the acquisition of all the issued capital in SRX by Grand Pharma Sphere (Australia Bidco) Pty Ltd, an entity owned by CDH Genetech Limited and China Grand Pharmaceutical and Healthcare Holdings Limited.