CFR Raises Offer for Adcock by 2% as Shareholder Vote Delayed

CFR Pharmaceuticals SA (CFR), Chile’s largest drug developer, raised its offer to buy South African drugmaker Adcock Ingram Holdings Ltd. (AIP) by 2 percent to 12.8 billion rand ($1.2 billion), days before Adcock shareholders were to vote on its previous offer.

CFR is now proposing an offer valued at 74.5 rand to 75.78 rand per share, with a minimum of 50 percent to be paid in cash, Johannesburg-based Adcock said in a statement today. Its previous cash and stock offer valued the company at about 75 rand a share, Adcock said Dec. 3.

Adcock shares rose as much as 2.8 percent, the most on an intraday basis in almost a month, and traded 0.9 percent higher at 70.60 rand by 2:53 p.m. in Johannesburg.

A consortium led by Bidvest Group Ltd. (BVT), South Africa’s second-biggest company by revenue, made an all-cash offer of 70 rand a share to buy a 34.5 percent stake in Adcock on Dec. 2. Shareholders were scheduled to vote on Santiago-based CFR’s previous 12.6 billion rand bid on Dec. 18. A new date for the meeting will now be scheduled for about the end of January. Both CFR proposals have been recommended by the Adcock board.

The Public Investment Corp., a manager of South African civil servant pension funds which holds almost 20 percent of Adcock, hadn’t given its support for the previous CFR deal. PIC was seeking an all-cash offer of as much as 74 rand, a person familiar with the matter said Dec. 5.

Daniel Matjila, chief investment officer for the PIC, wasn’t immediately available to comment. Julian Gwillim, a spokesman for Bidvest, didn’t immediately respond to calls seeking comment.

To contact the reporters on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net; Christopher Spillane in Johannesburg at cspillane3@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

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