Adcock Says Talks May Lead to Acquisition Bid for Company

Adcock Ingram Holdings Ltd. (AIP), South Africa’s largest hospital supplier, is in active talks with “a number of parties” that may result in the company’s sale, Chairman Khotso Mokhele said.

“The process we have put in place, which has been designed to ensure appropriate confidentiality in relation to Adcock Ingram’s commercially sensitive information, is aimed at providing certainty” for shareholders, employees and suppliers, Mokhele said today in a statement.

Adcock said May 9 that it had received non-binding proposals that could lead to an offer for all stock or a controlling stake, sending the Johannesburg-based drugmaker’s shares to their highest price in more than two years. The Public Investment Corp., the biggest shareholder, said May 14 that it would prefer that a South African company buy Adcock.

Bidvest Group Ltd. (BVT), whose offer for a controlling holding was rejected by the drugmaker in March, still wants to acquire Adcock and wants the same information made available to other bidders, Chief Executive Officer Brian Joffe said May 10. PIC also owns shares in Johannesburg-based Bidvest.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

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