By Lisa Kerner
Charlotte, N.C., April 4 - Jubilant Organosys, Ltd. agreed to acquire Draxis Health Inc. for $6 per share in cash, or some $255 million.
A wholly owned subsidiary of Jubilant will acquire all the outstanding common shares of Draxis by way of a plan of arrangement, according to a Draxis news release.
Draxis said the offer price is a 22.4% premium over the stock's closing price on April 3.
The board of directors of Draxis unanimously approved the deal and will recommend its shareholders vote in favor of the plan.
Jubilant said Draxis will provide the company entry into "the attractive, regulated, high-growth and high-margin radiopharmaceutical business."
The proposed transaction is expected to close in the second quarter subject to shareholder and court approvals.
A $10.5 million break-up fee payable by Draxis to Jubilant is included in the agreement.
Jubilant, a Noida, India, integrated pharmaceutical company, plans to fund the acquisition through a combination of cash-on-hand and debt, the company said.
Draxis was advised by Banc of America Securities Canada Co., and Jubilant was advised by Lazard.
Toronto-based Draxis provides sterile products, non-sterile products and radiopharmaceuticals.
| Acquirer: | Jubilant Organosys, Ltd.
|
| Target: | Draxis Health Inc.
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| Announcement date: | April 4
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| Transaction total: | $255 million
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| Price per share: | $6.00
|
| Expected closing: | Second quarter of 2008
|
| Stock price for target: | Nasdaq: DRAX: $4.90 on April 3
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