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Christopher Spillane, Janice Kew05 Dec 2013 14:27
A man walks past the headquarters of Adcock Ingram in Johannesburg. (Gallo)
Adcock Ingram Holdings's largest shareholder is seeking an all-cash offer of as much as R74 a share as Bidvest Group and CFR Pharmaceuticals compete for control of the South African drugmaker, according to a person familiar with the matter.
While the Public Investment Corporation (PIC), South Africa's state- owned pension fund manager that holds a 19% stake in Adcock, is encouraged by Bidvest's cash offer, it probably won't support a bid of R70 a share as it undervalues the company, said the person, who asked not to be identified because the discussions are private.
The PIC said on November 6 it won't support a R12.6-billion cash and stock offer from CFR, Chile's biggest drugmaker, that values Johannesburg-based Adcock's shares at about R73.51. Bidvest is offering R4-billion for a 34.5% stake.
Attempts to wrestle control of Adcock started in March, when Bidvest offered to pay about R6.2-billion in cash and shares for a 60% stake.
Since then, CFR emerged as the most likely suitor by fending off interest from London-based private equity firm Actis and securing the support of Adcock's board.
The transaction is now embroiled in legal action after Bidvest filed a complaint regarding the financing of CFR's proposal.
CFR is confident the offer complies with local laws, chief executive Alejandro Weinstein said on December 3. – Bloomberg
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