Feb 19 2010
MDS Inc. (TSX: MDS; NYSE: MDZ), a leading provider of products and services to the global life sciences markets, today announced that the Company intends to make a Substantial Issuer Bid (the "offer"), pursuant to which the Company will offer to repurchase for cancellation up to between 40% and 46% of its outstanding Common Shares for an aggregate purchase price of up to US$450 million.
The offer will proceed by way of a "modified Dutch auction", pursuant to which MDS shareholders may deposit all or a portion of their Common Shares (i) at a price of not less than US$8.10 and not more than US$9.30, in increments of US$0.05 per share; or (ii) without specifying a purchase price, in which case their Common Shares will be purchased at the purchase price determined in accordance with the offer. When the offer expires, MDS will select the lowest price within the range of prices specified above (the "purchase price") enabling the Company to purchase up to US$450 million of Common Shares. Shareholders will receive the purchase price in cash for Common Shares deposited at prices equal to or less than the purchase price, subject to proration in the event that the aggregate cost to purchase all of the Common Shares deposited at or less than the purchase price exceeds US$450 million. All Common Shares purchased by the Company will be purchased at the same price. All Common Shares deposited at prices higher than the purchase price will be returned to shareholders.
The offer is not conditional upon any minimum number of Common Shares being deposited; however, the offer is subject to certain other conditions. Full particulars of the terms and conditions of the offer will be contained in the Offer to Purchase and Issuer Bid Circular and other related documents, which will be filed with applicable securities regulatory authorities in Canada and the United States and mailed to holders of Common Shares on or about February 19, 2010. The offer will expire at 5 p.m. EDT on March 29, 2010, unless withdrawn or extended by the Company.
The Company has retained RBC Capital Markets as financial advisor and Dealer Manager in connection with the offer.
The Company's Board of Directors believes that the purchase of Common Shares under the offer represents the most equitable and efficient means to distribute a portion of the proceeds from the sale of MDS Analytical Technologies to MDS shareholders, and is in the best interests of the Company and its shareholders.
As of February 19, 2010, MDS Inc. had 120,137,829 Common Shares outstanding.