BioCentury
ARTICLE | Company News

Afexa, Valeant Pharmaceuticals deal

September 5, 2011 7:00 AM UTC

Valeant will acquire Afexa for C$0.71 per share in cash, or about C$76 million ($77.6 million). The price is a 20% premium to Afexa's close of C$0.59 on Aug. 29, before the deal was announced, and a 29% premium to the C$0.55 per share being offered by Paladin Labs Inc. (TSX:PLB, Montreal, Quebec). Valeant's price is a 48% premium to Afexa's close of C$0.48 on Aug. 9 before Paladin announced its unsolicited tender offer to acquire the 85.1% of Afexa it does not already own for either C$0.55 in cash or 0.013 Paladin shares (see BioCentury, Aug. 15).

Under the deal, Afexa has until Sept. 29 to "solicit and engage in discussions and negotiations" for potential competing acquisition proposals. Valeant has the right to match any superior proposals. If Afexa terminates the deal, it will owe Valeant a C$3.8 million ($3.8 million) termination fee. Afexa's board unanimously recommends Valeant's offer. Scotia Capital is advising Afexa. ...