Sterigenics has raised its takeover offer for Canadian medical isotope supplier Nordion to $805 million US after an earlier offer failed to draw enough shareholder support.
The Illinois-based medical products company is now offering $13 US a share, up from $12.24 a share.
The new offer appears to have been tendered after an unnamed third party offered $12.50 a share for Nordion, a former Crown corporation that relies on the aging Chalk River nuclear reactor to provide it with medical isotopes.
Nordion’s board said this unnamed bidder did not have the committed debt or equity financing to fund the acquisition. It is recommending the Sterigenics offer.
The deadline to vote on the earlier, lower Sterigenics offer was May 27, but that vote fell just shy of the two thirds majority required to pass. It did win the approval of 65.2 per cent of shareholders.
Sterigenics is hoping the new proposal, which represents a 24 per cent premium on Nordion stock price as of March 27, will win approval.
Nordion reported adjusted net income for the second quarter increased to $13.5 million, or 11 cents a share, up from $4.8 million or one cent a share during the same period in the previous fiscal year.
It generated $74.7 million in revenue for the second quarter of fiscal 2014, an increase of $18.6 million or 33 per cent, after a jump in its sterilization technologies revenue.