Bidvest makes $515 million bid for rest of Adcock Ingram
South African conglomerate Bidvest (BVTJ.J) has offered about $515 million for the shares it does not already own in drugmaker Adcock Ingram (AIPJ.J) in a new attempt to build a big presence in the pharmaceutical market.
The deal would give Bidvest a substantial presence in the generic market, which is set to grow as the government prepares a national health insurance plan that would rely on the use of cut-price versions of branded drugs.
Bidvest already owns a 34.5 percent stake in the drugmaker, which it acquired a year ago, scuppering a rival bid from Chile’s CFR Pharmaceuticals CFR.SN.
Adcock is trailing rivals as it struggles with slowing sales, over-reliance on a heavily regulated home market and factories that are running below capacity.
Under the latest offer, Bidvest would pay about 6 billion rand ($515 million), or 52 rand per share, which represents a 3.6 percent premium to Adcock’s closing price on Friday.
Shares in Adcock jumped as much as 6.6 percent during the session. By 9.10 a.m. ET, the stock had given up some its gains to trade 4.3 percent higher at 52.34 rand.
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