Chesterbrook-based Auxilium Pharmaceuticals said Thursday it would merge with Canadian biotech company QLT, in a $345 million stock deal designed to avoid paying higher U.S. corporate tax rates.
The New Auxilium will be registered in Canada, but much of the organization will continue operating from Chesterbrook.
The Auxilium statement says, in part:
Under the terms of the agreement, a wholly-owned subsidiary of QLT will be merged with and into Auxilium. QLT will remain incorporated in British Columbia, Canada, and will be renamed "New Auxilium." Current shareholders of Auxilium will receive 3.1359 QLT shares for each Auxilium share, subject to certain adjustments. For QLT shareholders, the transaction represents a 25% premium based on a calculation of the closing NASDAQ stock prices of Auxilium and QLT on June 25, 2014, the last trading day prior to the announcement of the merger. When completed, Auxilium shareholders will own approximately 76% of the combined entity on a fully diluted basis, and current QLT shareholders will own approximately 24%, subject to certain adjustments.