Africa, Business, invesment, Invesments, news, Uncategorized, World Bank, World Bank Group

Africa News December 02, 2013 at 08:57AM

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VENTURES AFRICA – South Africa-based distribution services and trading company Bidvest on Monday disclosed that it is leading a consortium that has made a renewed offer of R4 billion ($393,7m) to acquire a 34.5 percent stake in Adcock Ingra’s drug making business.

JSE-listed diversified industrials services firm said the new offer was opened right away and Adcock Ingram did not have to meet any conditions.

This comes after the board of Adcock Ingram had earlier this year rejected Bidvest’s bid to buy 60 percent of Adcock Ingram, saying the offer devalued the firm.

The latest Bidvest offer is less than the R12.6 billion ($1.2bn) bid made early this month by CFR Pharmaceuticals, Chile’s pharmaceutical company that is also pursuing Adcock Ingram.

The new offer may not gain acceptance of the shareholders as they would not gain much from it in terms of dividends that may be paid to them once the deal is completed.

On Monday, Bidvest sweetened the new deal by saying once the offer had been accepted, Adcock Ingram shareholders taking part in the offer will instantly get paid cash of R70,00 an Adcock Ingram ordinary share.

The Public Investment Corporation (PIC), among Africa’s biggest investment managers, which has always had reservations about the foreign control of Adcock Ingram, may support this new deal.

This is in view of the fact that the Community Investment Holding (CIH), which is a black economic empowerment (BEE) unit, is part of this consortium.

CIH was started by South Africa’s eminent BEE practitioner, Dr Anna Mokgokong and others and it is also the biggest BEE firm operating in South Africa’s drug sector for many years.

Dr Mokgokong, the Group Executive Chairperson at CIH, said her firm had been involved in this sector for many years and had a great track record.

Brian Joffe, the CEO at Bidvest, said because of CIH’s track record, he believed the group of companies bidding for Adcock Ingram qualified to add value to the targeted drugs firm.

Joffe said the new deal will allow Adcock Ingram to gain from a strong shareholder base and further enhance Adcock Ingram’s BEE status.

Last week, South Africa’s second biggest drug maker, Adcock Ingram moved to justify its tie-up with CFR Pharmaceuticals, saying this move would boost the company’s value.

“It has become increasingly apparent that Adcock Ingram should pursue a tie-up with another international pharmaceutical player to optimise its value now that modernisation of its facilities is essentially complete,” Jonathan Louw, the CEO at Adcock Ingram, said.




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