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Our Bureau

New Delhi, April 4

Jubilant Organosys on Friday announced that it will buy out Canada-based Draxis Health Inc by acquiring 100 per cent stake in the company by paying a 22.4 per cent premium over the last traded price of Draxis shares which is listed on the NASDAQ.

Jubilant will acquire all the outstanding common shares of Draxis at a price of $6.00 per share in cash by way of a plan of arrangement.

The total value of this transaction is approximately $255 million, a company release said.

Draxis’ board will now recommend to its shareholders that they vote in favour of the transaction on the basis that it creates immediate value for them.

Commenting on the acquisition, Mr Shyam S. Bhartia, Chairman & Managing Director and Mr Hari S. Bhartia, Co-Chairman & Managing Director of Jubilant Organosys said, “Draxis represents a unique opportunity in the North American market, offering Jubilant entry into the attractive, regulated, high growth and high margin radio-pharmaceutical business.”

The agreement between the two companies leaves room for unsolicited superior proposal in which case Draxis will have to pay Jubilant a breaking fee of $10.5 million.

More Stories on : Mergers & Acquisitions | Pharmaceuticals | Overseas Investments

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