Labopharm Inc. said Monday that it has received court authorization to seek shareholder approval for the proposed takeover of the company by a wholly owned subsidiary of Paladin Labs Inc.
The takeover by Chimigen Inc. would see Labopharm shareholders receive slightly more than 28.5 cents per share, making the deal worth just under $20.5-million.
The meeting to approve the arrangement has been slated for Oct. 5 and must receive approval from at least two thirds of shareholders. The board of directors of Labopharm has recommended that shareholders vote in favour of the Arrangement Resolution.
Labopharm produces the antidepressant Oleptro and pain reliever Tramadol and Tramadol-acetaminophen.
Montreal-based Paladin is focused on researching, developing, acquiring or in-licensing pharmaceutical products for the Canadian and world markets.
Labopharm stock was unchanged at 28 cents at midday Monday on the Toronto Stock Exchange, while Paladin shares were off 68 cents at $36.26.