CFR Pharma increases bid for Adcock Ingram which is still rejected by PIC

Chilean drugmaker CFR Pharmaceuticals has raised its offer price for Adcock Ingram (AIP: SP), South Africa’s second largest pharma firm, to 74.50 rand per share in cash and shares, for a total of 12.8 billion rand ($1.24 billion), up from its original offer of 73.50 rand to acquire 100% of the company (The Pharma Letter September 12).

Investors were expected to vote on the initial offer this week, but due to the revised offer, the board of Adcock has proposed an adjournment to give investors time to consider it, according to local newspaper Business Daily, which notes that revised offer dwarfs Bidvest’s counter offer of 70 rand per share bid for a 34.5% stake in Adcock.

However, according to MoneyWeb, the deal was rejected by the state-run Public Investment Corporation (PIC), Adcock's top shareholder (with an 18.9% stake), which also rejected the original bid (TPL November 8), so paving the way for local firm Bidvest Group (JSE: BVT) for a stake of around a third of the company.