Boston, MA 05/16/2014 (wallstreetpr) – According to two leading proxy research and advisory firms, the planned takeover of Nordion Inc (USA) (NYSE:NDZ) is in the best interest of the shareholders. Glass Lewis & Co. (Glass Lewis) and Institutional Shareholder Services Inc (ISS) each asked shareholders to vote in favor of the buyout.
Shareholders of Nordion are scheduled to meet on May 27 on which they will have their verdict on the planned buyout of the company by Sterigenics.
Proxy recommendation
According to Glass Lewis, the rigorous review of the deal that saw a superior proposal being presented and Sterigenics agreeing to top up its offer indicate that the transaction best serves the shareholders. On their part, ISS noted that the fact that 100 percent of the transaction will be done in cash means that shareholders are certain of the value at the end of the day. Furthermore, the transaction is not subject to financing conditions.
For those and many other reasons, the two firms recommend shareholder approval of the transaction. Although shareholders will in the next several days get a chance to vote on the deal, the transaction is subject to regulatory approval.
The deal in fine details
The board of Nordion Inc (USA) (NYSE:NDZ) agreed to sell the company to Sterigenics, a sterilization company owned privately by GTCR LLC. The companies agreed to a $758 million deal that translates to $12.25 per share. The amount will be paid in cash.
The value of the deal was amended from $727 million after Nordion received an unsolicited rival bid that looked superior to what Sterigenics initially offered. As such, Nordion had the choice to go for the rival bid if Sterigenics did not sweeten its proposal.
Nordion Inc (USA) (NYSE:NDZ) reported its latest financial results on March 7. The company earned 59 cents per share, ahead of the consensus estimate of 22 cents. The company generated revenue of $70.80 million, beating consensus estimate of $66.55 million for the quarter.
Shares of the company are up 10.29 percent in the past one month and 45.47 percent year-to-date.
