Chilean drugmaker CFR bids for Adcock for US$1.3 billion

July 3
6:13 AM 2013

Adcock Ingram Holdings Ltd. received a non-binding offer from Chilean drug manufacturer CFR Pharmaceuticals SA.  Adcock, South Africa's biggest provider of hospital products was worth ZAR12.8 billion equivalent to US$1.3 billion.

The possible bid price from CFR was ZAR73.51. This was 14% higher than Adcock's concluding price of ZAR64.50 yesterday. The Johannesburg-based supplier said that CFR would pay in cash and stock.

"This offer has a compelling rationale from an emerging market point of view," an independent administrator at Adcock, Andrew Thompson, stated in a phone interview. "There is no other South African company that could have offered this combination."

The merger with CFR would enable the company to earn around US$1.3 billion yearly. It would acquire an asset base of roughly US$2.1 billion, Adcock added. It would also allow Adcock to be in more than 23 countries and employ greater than 10,000 people.

Adcock's stock gained 6.9% before the company admitted that it received the non-binding bid. This could lead to a proposal for all stock or a controlling share.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics