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VENTURES AFRICA –South Africa’s state pension fund PIC Thursday rejected Bidvest’s $393 million renewed offer for loss-making Adcock Ingram in a double whammy for the JSE-listed industrial’s services giant.
Bidvest’s offer for Adcock Ingram has now been rejected by both the targeted company and the state pension fund within a week.
Reuters quoted a PIC well-placed source as saying the state pension fund was not prepared to sell its 19 percent shareholding in Adcock Ingram to Bidvest.
Many observers had thought that PIC would support Bidvest’s renewed offer for South Africa’s loss-making drug-maker because the renewed offer had some black economic empowerment (BEE) element in it.
“The PIC is not going to be part of the Bidvest offer because 70 rand per share undervalues Adcock,” Reuters quoted a person familiar with the matter a saying.
On Monday this week, Bidvest made a surprise offer of $393 million for 34.5 percent of Adcock Ingram, South Africa’s second biggest drug-maker.
PIC had also rejected the $1.2 billion CFR Pharmaceuticals’ offer for Adcock Ingram because CFR is a foreign company listed on Chile’s Santiago Stock Exchange.
The PIC is the largest shareholder in the South African drug-maker with about a 19 percent shareholding.