Sirtex in trading halt over developments on CDH takeover offer

Biotech company Sirtex has entered a trading halt ahead of an announcement relating to "material developments" in the $1.9 billion proposal it received from CDH Investments earlier this month.

The $US20 billion Chinese-based alternative asset manager made a non-binding, indicative counter offer for Sirtex at $33.60 cash a share on May 4. This offer, which came after a $1.6 billion bid from US cancer treatment developer Varian Medical in January, is subject to due diligence and approval by CDH's investment committee as well as the Foreign Investment Review Board.

"The trading halt is requested pending the release of an announcement on material developments in the proposal from CDH ," Sirtex said in a statement on Tuesday.

The company has been facing shareholder class actions relating to a December 2016 downgrade of its sales growth forecasts for its microspheres, which are used to treat some cancers.

Separate to the class action, its former chief executive, Gilman Wong, is also being investigated by the Australian Securities and Investments Commission over trades he made in the troubled biotechnology group's shares ahead of a profit downgrade. Mr Wong has denied any wrongdoing.

The company last year paid a penalty of $100,000, without any admission of liability, after being issued with an infringement notice by ASIC for allegedly breaching its continuous disclosure obligations to shareholders.

Sirtex's shares were down on Monday morning before the trading halt was announced at $29.83.