Inverness Medical Innovations Inc announces that it has commenced a cash tender offer to acquire a majority equity interest in Standard Diagnostics ("SD"), a rapid diagnostics company in Korea.
Inverness has offered to acquire up to 75.79% of the issued shares of SD, and Dr Young Shik Cho, Representative Director, President and CEO of SD and its largest shareholder, announced he will tender 720,000 of his own shares in support of Inverness’ investment. Inverness’ obligation to purchase shares is, amongst other things, conditioned on the tender of at least 2,408,000 shares (inclusive of Dr. Cho’s 720,000), which is approximately 30.1% of the total shares issued as of January 8, 2010. If the minimum tender is achieved, Dr. Cho and IMI will collectively own more than 50% of SD.
The tender offer price is KRW 40,000, which represents a premium of over 33% of the 90-day trailing average (29,867 KRW) of SD’s share price. Shareholders may tender their shares from January 11, 2010 until February 1, 2010. The settlement date is February 8, 2010.
Dr. Cho stated, "This proposed transaction provides SD with the resources and support to continue its growth as a globally competitive leader in the field of disease diagnosis." Upon successful completion of the tender offer, Dr Cho would remain the President and CEO of SD.
"We look forward to working with Dr Cho and his entire team at Standard Diagnostics," said Ron Zwanziger, President and CEO of Inverness. "Inverness is committed to providing products and service to enable patients to take charge of their own health at home. Our vision for improving patient outcomes aligns closely with the vision of Dr Cho and SD. We are excited about the opportunity to partner with Dr Cho and continue to expand our global presence."
Source: Inverness Medical
