Chilean drugmaker CFR Pharmaceuticals SA (CFR) said it made a firm 12.6 billion rand ($1.2 billion) offer to buy South African drugmaker Adcock Ingram Holdings Ltd. (AIP), with a minimum of 51 percent to be made in cash.
The company, which made a non-binding offer for Johannesburg-based Adcock in July, said in a statement today the proposal had been recommended to investors by the Adcock board and was supported by about 45 percent of shareholders.
Adcock shares gained as much as 4.3 percent, the most in two months, and traded 2.5 percent higher at 71 rand as of 3 p.m. in Johannesburg.
CFR said on Nov. 11 that it could walk away from its attempt to buy Adcock if it didn’t receive support for its offer. The Public Investment Corp., Adcock’s biggest shareholder with a 19 percent stake, said on Nov. 6 it wouldn’t support the offer. Daniel Matjila, chief investment officer of the PIC, Africa’s biggest money manager, said today the company still hadn’t backed the deal.
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