TORONTO, April 9 /CNW/ - MDS Inc. (NYSE: MDZ; TSX: MDS), a leading
provider of products and services to the global life sciences markets,
announced today the preliminary results of its substantial issuer bid, which
expired at 5:00 p.m. EST on April 5, 2007.
Based on these results, MDS Inc. has accepted for purchase and
cancellation 22,831,050 common shares at a purchase price of C$21.90 per
share, totaling C$500 million in accordance with the terms of the bid. These
shares represent 15.8% of the common shares currently outstanding. After the
planned repurchase, the number of common shares outstanding will be
approximately 121.9 million.
Approximately 22.8 million common shares were tendered to the bid at
prices at or below the purchase price of $21.90 per share. After the purchase
of odd lots, the common shares will be taken up on a pro rata basis such that
shareholders, who deposited common shares at or below the purchase price of
$21.90 per share, will have approximately 99.9% of the common shares they
tendered purchased for cancellation.
Payment and settlement will be effected by Clearing Depository Services
in accordance with its settlement procedures and the terms of the bid
commencing on or about April 13, 2007.
For Canadian tax purposes a deemed dividend of $16.75 per share would
arise on this share buyback. For the enhanced dividend tax credit under
subsection 89(14) of the Income Tax Act (Canada) and for any corresponding
provincial legislation, MDS designates $16.71 per share as an "eligible
dividend" with the remaining $0.04 per share representing a "non-eligible
For purposes of subsection 191(4) of the Income Tax Act (Canada), the
specified amount in respect of the shares purchased under this buyback is
RBC Capital Markets acted as dealer manager and financial advisor in
connection with the substantial issuer bid.
About MDS Inc.
MDS Inc. (TSX: MDS; NYSE: MDZ) is a global life sciences company that
provides market-leading products and services that our customers need for the
development of drugs and diagnosis and treatment of disease. We are a leading
global provider of pharmaceutical contract research, medical isotopes for
molecular imaging, radiotherapeutics, and analytical instruments. MDS has more
than 6,200 highly skilled people in 28 countries. Find out more at
www.mdsinc.com or by calling 1-888-MDS-7222, 24 hours a day.
For further information:
For further information: Investors: Sharon Mathers, Senior
Vice-President, Investor Relations and External Communications, MDS Inc.,
(416) 675-6777 x34721, email@example.com; Media: Catherine Melville,
Director, External Communications, MDS Inc., (416) 675-6777 x32265,