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Johannesburg - Bidvest [JSE:BVT] on Monday offered to buy about a third of drugmaker Adcock [JSE:AIP] in a $393m (about R4bn) deal that could scupper Chile's CFR Pharmaceuticals' $1.2bn (R12.6bn) bid for the Johannesburg-based firm.
Adcock, South Africa's No 2 pharmaceutical firm, has underperformed rivals both operationally and in the stock market in recent years, prompting several investors, which include Bidvest, to put in offers for all or part of it.
But Adcock's board so far had rejected all proposals in favour of Santiago-based CFR's offer, saying this R12.6bn cash and share offer was the only one with strategic merits and fairly valued the company.
Bidvest, which owns about 4% of Adcock, and Community Investment Holdings (CIH) on Monday offered R70 a share in cash for up to 34.5% of the drugmaker. The offer totalled nearly R4bn.
"We believe that the consortium has the credentials to add value to Adcock, something which is clearly required," Bidvest's founder and chief executive Brian Joffe said in a statement.
The offer opens immediately, Bidvest and unlisted CIH said in a statement, adding they have also launched a lawsuit to challenge the legal and regulatory aspects of the process leading up to CFR's formal offer for Adcock.
The lawsuit and Bidvest's unconditional offer directly to shareholders could, if successful, derail CFR's bid after Adcock's biggest shareholder, the South African government-run Public Investment Corporation, rejected it earlier this month.
Support for CFR deal questioned
Sometimes called the "General Electric of South Africa", Bidvest has businesses in freight, banking and food services and operates in Europe, Asia, Australia and southern Africa.
Joffe has a reputation as a cost-cutter and for buying underperforming companies that can benefit from Bidvest's distribution network and customer base.
Bidvest and CIH did not specify what exactly the lawsuit would challenge, but Bidvest has complained to the Johannesburg Stock Exchange about the CFR deal, accusing Adcock's board of misleading investors about the levels of shareholder support.
CFR said it had the support of shareholders owning 29.3% of Adcock and letters of support from those with a further 7.5%, giving it a total backing of 36.8%.
CFR's cash and share deal, of which the minimum of 51% must be settled in cash, requires 75% shareholder support to be successful under South African law.
If the Bidvest offer is successful, it would be enough to vote the CFR deal down at a shareholder meeting next month.
Adcock, South Africa's No 2 pharmaceutical firm, has underperformed rivals both operationally and in the stock market in recent years, prompting several investors, which include Bidvest, to put in offers for all or part of it.
But Adcock's board so far had rejected all proposals in favour of Santiago-based CFR's offer, saying this R12.6bn cash and share offer was the only one with strategic merits and fairly valued the company.
Bidvest, which owns about 4% of Adcock, and Community Investment Holdings (CIH) on Monday offered R70 a share in cash for up to 34.5% of the drugmaker. The offer totalled nearly R4bn.
"We believe that the consortium has the credentials to add value to Adcock, something which is clearly required," Bidvest's founder and chief executive Brian Joffe said in a statement.
The offer opens immediately, Bidvest and unlisted CIH said in a statement, adding they have also launched a lawsuit to challenge the legal and regulatory aspects of the process leading up to CFR's formal offer for Adcock.
The lawsuit and Bidvest's unconditional offer directly to shareholders could, if successful, derail CFR's bid after Adcock's biggest shareholder, the South African government-run Public Investment Corporation, rejected it earlier this month.
Support for CFR deal questioned
Sometimes called the "General Electric of South Africa", Bidvest has businesses in freight, banking and food services and operates in Europe, Asia, Australia and southern Africa.
Joffe has a reputation as a cost-cutter and for buying underperforming companies that can benefit from Bidvest's distribution network and customer base.
Bidvest and CIH did not specify what exactly the lawsuit would challenge, but Bidvest has complained to the Johannesburg Stock Exchange about the CFR deal, accusing Adcock's board of misleading investors about the levels of shareholder support.
CFR said it had the support of shareholders owning 29.3% of Adcock and letters of support from those with a further 7.5%, giving it a total backing of 36.8%.
CFR's cash and share deal, of which the minimum of 51% must be settled in cash, requires 75% shareholder support to be successful under South African law.
If the Bidvest offer is successful, it would be enough to vote the CFR deal down at a shareholder meeting next month.
