Get more Mail & Guardian
Subscribe or Login

Decision on Adcock offer imminent, says CFR

Chile's CFR Pharmaceuticals South Africa completed due diligence of the Johannesburg-based maker of hospital products and medicines, Adcock Ingram, in mid-August, and is now "doing a thorough review of all data to see if we move to the next binding step," said its chief executive Alejandro Weinstein in an interview at CFR’s headquarters in Santiago on August 30.

"At this stage, we have to be very rational. No decisions can be done only by gut feeling."

CFR said in July that it signed a non-binding agreement to buy Adcock in a cash-and-shares deal that values the South African company at a potential $1.3-billion, or R73.51 a share. The offer has prompted a rival bid from Actis LLP, a London-based private-equity firm, two people familiar with the matter said on August 13.

Bidvest Group, a Johannesburg-based food and car sales company, had a bid for 60% of Adcock rejected in March and its pursuit remains a "work in progress," financial director David Cleasby said on August 26.

"If there are other bidders it’s a good sign," Weinstein said. His company has exclusive negotiating rights, he said.

"It means that we are aiming for something good. I would be more concerned if there weren’t other interested parties."

Shareholder opposition
CFR said in the July statement that it planned to finance the Adcock deal with a $750-million share sale, $500-million of debt and $50-million of cash.

Any unsubscribed shares would be listed in Johannesburg and given to Adcock investors, a clause that has been opposed by some shareholders who said such an arrangement may overvalue CFR.

Adcock shares traded at R66.10 at the close in Johannesburg on August 30, 10% below the potential value of the CFR proposal. "If and when we move to the binding offer, we’ll disclose the final details of how much we plan to pay in cash and how much in shares," Weinstein said.

Adcock didn’t immediately reply to an e-mail seeking comment today. – Bloomberg

Subscribe to the M&G

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them.

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

R15m to rid Gauteng of dirty air

The World Bank is funding a plan to deal with air pollution in Ekurhuleni, Tshwane and Johannesburg

Reservations about ‘new deal’ for rhinos, lions, elephant, leopards

Draft policy promotes species playing their role in wilderness systems but one conservationist says leopards are being sold out

More top stories

R15m to rid Gauteng of dirty air

The World Bank is funding a plan to deal with air pollution in Ekurhuleni, Tshwane and Johannesburg

Reservations about ‘new deal’ for rhinos, lions, elephant, leopards

Draft policy promotes species playing their role in wilderness systems but one conservationist says leopards are being sold out

Transaction Capital finds trust among used-car salesmen

The firm believes the second-hand vehicle business will thrive in a post-Covid world

The budget cuts that spite a nation’s face

Starving StatsSA of its ability to measure inequality may be a short-term face-saving strategy but it does not make the inequality disappear
Advertising

press releases

Loading latest Press Releases…
×