China-based alternative asset fund manager CDH Investments has made an offer of around (A$1.87bn) $1.4bn to acquire Australian medical devices maker, Sirtex Medical.

The unsolicited non-binding, indicative and conditional proposal was maded by CDH to purchase 100% of its stock by paying A$33.60 per share.

The indicative proposal is subject to multiple conditions, including approval by CDH's Investment Committee.

The acquisition of Sirtex will also be conditional on approval of Australia's Foreign Investment Review Board.

Sirtex said that is board has resolved to engage with CDH to further understand the conditions associated with the indicative proposal and explore the potential to enter into a binding agreement.

Sirtex produces SIR-Spheres Y-90 resin microspheres, which is a targeted radioactive treatment for liver cancer.

The firm has supplied around 80,000 doses of SIR-Spheres Y-90 resin microspheres to treat liver cancer patients in more than 1,090 medical centres in over 40 countries.

The product secured PMA approval from the US Food & Drug Administration and CE mark approval in the European Union. It was also approved by Australia's Therapeutic Goods Administration.

SIR-Spheres Y-90 resin microspheres will deliver targeted internal radiation therapy directly to liver tumors through the hepatic artery.

In January this year, US firm Varian Medical Systems signed an agreement to acquire Sirtex Medical for around $1.3bn.

Variant commented on the acquisition of all of the issued shares in Sirtex by Chinese alternative asset manager.

Based on the latest developments, Sirtex is planning to seek an adjournment of the meeting of its stockholders to approve the scheme implementation deed between the company and Varian.

Varian president and CEO Dow Wilson said: "The Varian Scheme has been unanimously approved by both boards of directors, has fully committed financing and has received all necessary regulatory approvals. We believe the Varian Scheme offers more value and carries far less risk for Sirtex stockholders.

"We stand ready to complete the acquisition following the receipt of Sirtex stockholders' approval and the satisfaction of other closing conditions.  We look forward to welcoming our new Sirtex colleagues to Varian."

Image: CDH Investments has proposed to acquire Sirtex Medical. Photo: courtesy of adamr /