Bidvest Offers $511 Million for Remaining Shares in Adcock

Bidvest Group Ltd. offered to buy the Adcock Ingram Holdings Ltd. shares it doesn’t already own, a year after CFR Pharmaceuticals SA of Chile dropped its bid for South Africa’s biggest maker of hospital products.

The 5.98 billion rand ($511 million) offer for 65.5 percent of Johannesburg-based Adcock’s stock is at 52 rand a share in cash, Bidvest said on Monday. That is a 13 percent premium to the volume-weighted average price per Adcock share for the month through Feb. 20. Adcock shares rose as much as 6.6 percent and traded 3.9 percent higher at 52.17 rand as of 3:14 p.m. in Johannesburg.

CFR, Chile’s biggest drugmaker, dropped a 12.8 billion rand offer for Adcock on Feb. 7, 2014, ending a 10-month fight for control of the company. It was thwarted after Bidvest, the Johannesburg-based owner of food services and car sales businesses, built a 34.5 percent stake at prices of as much as 70 rand a share. The offer was also opposed by the Public Investment Corp., Adcock’s second-biggest shareholder and the manager of some South African government-worker pension funds.

The proposed offer “will remove the uncertainty surrounding Bidvest’s intention to acquire the remaining Adcock ordinary shares that it does not already own,” Bidvest said. Approval from competition authorities has already been obtained, the company said.

Adcock’s net income rose 39 percent to 141.9 million rand in the six months through December, the maker of Corenza flu medicine and Panado pain killers said earlier Monday. Sales increased by 1 percent.

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