(By Balaseshan) Theragenics Corp. (NYSE:TGX), a medical device company serving the surgical products and cancer treatment markets, said it is beginning a modified "Dutch Auction" tender offer to repurchase up to $10 million of its common stock. Following the news, the shares touched a new 52-week high.
Under the terms of the tender offer, Theragenics stockholders would have the opportunity to tender some or all of their shares at a price within a range of $2.00 to $2.40 per share.
Theragenics would determine the lowest per share price within the range that will enable it to buy $10 million of its shares, or such lesser number of shares that are properly tendered, based on the number of shares tendered and the prices specified by the stockholders.
All shares accepted for payment will be purchased at the same price, regardless of whether a stockholder tendered such shares at a lower price within the range.
At the minimum price of $2.00 per share, Theragenics would repurchase a maximum of 5 million shares, which represents about 14% of Theragenics' currently outstanding common stock. Theragenics will fund this repurchase from available cash on hand.
The low and high ends of the price range for the tender offer represent premiums of about 14% and 36%, respectively, to the closing price per share of $1.76 for Theragenics' common stock on June 11, the last trading day prior to the tender offer announcement.
The company expects its balance cash and investment plus the ongoing cash flows from its business to allow Theragenics to continue to pursue other facets of its strategic plan.
The dealer manager for the tender offer would be Georgeson Securities Corp., and the depositary for the tender offer would be Computershare Trust Co. N.A.
TGX is trading up 17.05% at $2.06 on Tuesday. The stock has been trading between $1.18 and $2.10 for the past 52 weeks.