Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Adcock’s Biggest Shareholder Said to Seek Higher Cash Offer

Adcock Ingram Holdings Ltd.’s largest shareholder is seeking an all-cash offer of as much as 74 rand ($7.10) a share as Bidvest Group Ltd. and CFR Pharmaceuticals SA compete for control of the South African drugmaker, according to a person familiar with the matter.

While the Public Investment Corp., South Africa’s state-owned pension fund manager that holds a 19 percent stake in Adcock, is encouraged by Bidvest’s cash offer, it probably won’t support a bid of 70 rands 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 Nov. 6 it won’t support a 12.6 billion-rand cash and stock offer from CFR, Chile’s biggest drugmaker, that values Johannesburg-based Adcock’s shares at about 73.51 rand. Bidvest is offering 4 billion rand for a 34.5 percent stake.

Attempts to wrestle control of Adcock started in March, when Bidvest offered to pay about 6.2 billion rand in cash and shares for a 60 percent stake. Since then, CFR emerged as the most likely suitor by fending off interest from London-based private equity firm Actis LLP 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 needs a guarantee from Adcock to finance a loan required to complete the potential deal, Bidvest said in a document lodged in the High Court in Johannesburg on Dec 3. Provision of that guarantee would be “unlawful,” Bidvest said in the document.

CFR is confident the offer complies with local laws, Chief Executive Officer Alejandro Weinstein said on Dec. 3.

Bidvest closed 1.1 percent higher at 252.88 rand in Johannesburg. Adcock’s shares rose 0.7 percent to 70.75 rand.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.