Eckert & Ziegler announces offer to Board to Acquire Theragenics
Eckert & Ziegler Strahlen- und Medizintechnik AG, the majority shareholder of IBt Bebig, has announced that it has submitted a non-binding proposal to the Board of Directors of Theragenics Corporation to acquire, either directly or through IBt Bebig, all the outstanding shares of Theragenics for $2.20 per share, in cash. The offer represents a total equity value of approximately $74 million and a premium of 38.4% over Theragenics' closing stock price on March 16, 2011. The offer also represents a premium of 15.8% over the 52 week high trading price of Theragenics stock.
The non-binding offer, which was made on February 8, 2011, and rejected by Theragenics on March 11, 2011, was reiterated in a letter sent to Theragenics' Board of Directors. Theragenics has been unwilling to engage in discussions with Eckert & Ziegler. Eckert & Ziegler is disclosing the contents of its letter and non-binding offer in order to inform Theragenics' shareholders of the significant shareholder value and compelling strategic fit inherent in a combination of the two companies.
Eckert & Ziegler has named Canaccord Genuity, based in Boston, Massachusetts, USA, as its U.S. Financial advisor and Equinet Bank AG, based in Frankfurt, Germany, as its European Financial advisor. Eckert & Ziegler has secured several support letters from major financial institutions and is confident of its ability to finance the transaction.
"We believe this proposed combination provides superior value to our respective shareholders and will enable us to offer better products, better services and innovation to our customers," said Dr. Andreas Eckert, CEO of Eckert & Ziegler and Chairman of the Board of IBt Bebig. "We continue to believe that our all cash offer of $2.20 per share is a highly welcome and fair exit for shareholders of Theragenics. We are disappointed that the Theragenics Board of Directors has thus far refused to engage in a discussion of acceptable terms. However we remain committed to the transaction and are prepared to consider all alternatives to successfully complete this transaction."
No decisions have been taken about the final form and structure that a combination of the two radiation therapy businesses might have. The Executive Directors and the Board of IBt Bebig, however, have been closely involved in the Eckert & Ziegler discussions regarding Theragenics and support an integration of the Theragenics businesses into the IBt Bebig structures.
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