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South African drugmaker Adcock Ingram said on Thursday a rival bid was in the offing to a $675m (R60.7) one made by conglomerate Bidvest [JSE:BVT], raising the stakes for a possible acquisition and pushing its share price up almost 8%.
Adcock said in a statement it had received non-binding proposals that could lead to an offer to buy all of, or a controlling stake, in the company.
The company also said Bidvest had not made any new proposals since its original bid made this year, which was spurned by the drugmaker's board.
"The board has previously stated that it will consider any proposal, made in good faith, which could serve to create value for Adcock Ingram shareholders and promote the interests of the company," Adcock said in a statement.
Bidvest said in early April it could turn its bid for Adcock into a hostile take-over, bucking a history of friendly acquisitions. Bidvest declined comment on the latest proposal.
Bidvest's cash and share offer of about R61 per share was around 20% below what Adcock Ingram should be trading at based on its most likely earnings growth prospects, according to Thomson Reuters StarMine.
Adcock has underperformed rivals both operationally and in the stock market in recent years. It has said investments in factories, acquisitions and distribution partnerships with global drugmakers have set it up for a turnaround.
The company, which derives 40% of its revenue from pain killers and over-the-counter drugs, was almost exclusively focused on South Africa, even as rivals like Aspen Pharmacare have pushed into other markets.
Adcock's share price was up almost 8% at R66.72 in afternoon trade in Johannesburg.
