April 3 (Bloomberg) -- Bidvest Group Ltd. said that it stood by terms of its 6.2 billion-rand ($674 million) offer to amass a 60 percent stake in drugmaker Adcock Ingram Holdings Ltd. and that investors should be allowed to vote on the bid.
Adcock, which makes Panado painkillers and Corenza cold medicine, said yesterday that it couldn’t recommend Bidvest’s cash-and-stock offer because of “legal and material” concerns, including the timing and nature of the bid.
“Shareholders are advised that Bidvest is considering its position in relation to the issues raised and inaccuracies contained in the aforementioned response,” and it may make a further comment at some point, Johannesburg-based Bidvest said in a statement today.
Bidvest, an investment company with assets that include car sales, food service and coal export terminals, offered in March to buy Adcock shares half in cash at 65 rand a share and half in stock at a ratio of one Bidvest share for every four Adcock shares. Bidvest already held 2.54 percent of Johannesburg-based Adcock when it announced the proposal.
The deal values Adcock at 62.38 rand a share, 4 percent higher than the 60 rand that the stock cost at the close today in Johannesburg and 11 percent more than the closing price on March 20, the last trading day before the offer was made.
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