Draxis shareholders will decide merger with Jubilant on May 23

By Lisa Kerner

Charlotte, N.C., April 24 - Draxis Health Inc. shareholders will vote on the company's acquisition by a subsidiary of Jubilant Organosys Ltd. at its annual and special meeting scheduled for May 23 at 10 a.m. ET, a Draxis news release said.

The record date for the meeting is April 24.

The Jubilant subsidiary will acquire all of Draxis' common shares for $6 each in the $255 million deal, according to the release.

Draxis said it obtained an interim order from the Quebec Superior Court in connection with the proposed statutory arrangement.

It was previously reported that Draxis will provide Jubilant with entry into the radiopharmaceutical business, an industry that Jubilant called "attractive, regulated, high-growth and high-margin."

A $10.5 million break-up fee payable by Draxis to Jubilant is included in the agreement.

Jubilant, a Noida, India, integrated pharmaceutical company, said it plans to fund the acquisition through a combination of cash on hand and debt.

Toronto-based Draxis provides sterile products, non-sterile products and radiopharmaceuticals.

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