Transplant device specialist Lifeline Scientific (LSIC) has entered into a merger agreement with medical products company Shanghai Genext Medical Technology (see right). The cash offer stands at $87.8m (£65.7m) and, should the deal be accepted, shareholders will receive just over $4.08 per share. At the current exchange rate, that represents a discount to Lifeline's share price just prior to the deal being announced.
Nonetheless, Lifeline's board has recommended that shareholders approve the deal. It highlighted that the bid represents a chunky premium to the company's share price just over a year ago, when it first launched a "comprehensive review of strategic and financial alternatives to enhance shareholder value". Chief executive David Kravitz believes the combined group "will be one of the largest and fastest-growing medical technology companies in the clinical transplant sector". If the deal secures shareholder approval, Lifeline's shares will be delisted from Aim by early December.
