TPG Capital is offering 28% over the company’s previous day closing price, or $23.35.

Axcan Pharma, which focuses on treatments for gastrointestinal diseases, will be acquired by TPG Capital, an investment company. The all-cash transaction is worth approximately $1.3 billion.

TPG Capital and its affiliates will purchase all of Axcan’s common shares for $23.35 per share. This represents a 28% premium over the company’s closing price on November 28. Axcan opened trading today at $22.67.

The transaction will be financed through a combination of equity contributed by TPG Capital and its affiliates and debt financing that has been committed by Bank of America and HSBC.

Axcan anticipates that the transaction will be completed in the first calendar quarter of 2008. The firm’s stock will then be delisted. Headquarters will remain in Quebec, Canada.

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