The Sirtex Medical Limited (ASX: SRX) share price finished the day 1.3% higher at $33.52 this afternoon after the regenerative medicine company provided an update on its takeover approach.
According to the release, the Federal Court of Australia has today made orders approving the scheme of arrangement under which Grand Pharma Sphere, an entity owned by CDH Genetech and China Grand Pharmaceutical and Healthcare Holdings, will acquire all the shares in Sirtex for $33.60 per share.
The next step for Sirtex will be lodging a copy of the Court order with the Australian Securities and Investments Commission tomorrow, after which the scheme will become effective.
Then what happens?
Management expects the company's shares to be suspended from the close of trade on Thursday.
After which, Sirtex shareholders on the share register on the scheme record date (Monday September 17) will be entitled to receive the cash consideration of $33.60 per share. This will then be paid on the implementation date, which is currently expected to be Thursday September 20.
What should you do with the funds?
If you're looking to reinvest these funds back into similar areas of the market then there are two shares that I think are worth considering right now.
Cynata Therapeutics Ltd (ASX: CYP) is a stem cell research company which I think has a bright future ahead of it. Its impressive Cymerus technology can source all of its cells from a single adult donor. Management believes this will increase clinical predictability and cut down on manufacturing costs. It also makes it a more commercially scalable stem cell technology.
Mayne Pharma Group Ltd (ASX: MYX) could be worth considering after the pharmaceutical company advised that the price deflation in the generic drugs market had finally eased. I believe improving market conditions and new product launches put the company in a strong position to return to growth this year.
