Jubilant acquires Draxis for $ 255 mln

New Delhi, Apr 4 (UNI) Jubilant Organosys Ltd today said it has entered into an agreement with Draxis Health Inc to acquire all the outstanding common shares of the company for a total value of about 255 million dollars.

The shares will be acquired at a price of six dollars per share in cash by way of a plan of arrangement, a company statement said.

''Draxis represents a unique opportunity in the North American market for us, offering an entry into the attractive, regulated, high growth and high margin radiopharmaceutical business,'' Jubilant Organosys Ltd CMD Shyam S Bhartia SAID.

It also enables Jubilant to consolidate its position in the sterile and non-sterile contract manufacturing business, he added.

With this acquisition, Jubilant will become one of the leading providers of contract manufacturing of small volume parenterals to large pharmaceuticals and biotech companies in North America.

The transaction will be carried out by way of a statutory plan of arrangement pursuant to the Canada Business Corporations Act and must be approved by the Quebec Superior Court and the affirmative vote of Draxis's shareholders at a special meeting of shareholders.

The proposed transaction is expected to close in the second quarter of 2008, shortly after receipt of shareholder and court approvals.

Draxis has agreed to pay Jubilant a break fee of 10.5 million dollars in such circumstances and certain other limited circumstances if the transaction is not completed, the statement added.

Jubilant plans to fund the acquisition through a combination of cash-on-hand and debt.

Jubilant is an integrated pharmaceutical industry player, and is one of the largest custom research and manufacturing services (CRAMS) and drug discovery and development services companies out of India.

UNI SR BJR DB2052