Publications
Partners
Johannesburg - Industrial firm The Bidvest Group [JSE:BVT] on Friday offered to lift its stake in drug firm Adcock Ingram Holdings [JSE:AIP] to 60% in a cash and share deal worth about $700m.
Bidvest, which currently owns 2.5% of Adcock, said it believed the drug maker would benefit from membership in its stable of companies that spans everything from catering to freight.
Bidvest said it was offering R65 per share, to be paid half in cash and half in its own shares. It said it would offer one of its shares for every four Adcock shares.
Shares of Adcock surged 11% to R62.15 on the news.
Shares of Bidvest fell 2% to R237.50.
Based on the offer price of R65 per share, the stake would cost nearly R6.5bn, according to Reuters calculations.
Adcock, South Africa's second-largest drugmaker, has set its sights on international markets, saying it aims to make more than 30% of its sales outside South Africa in three years.
Adcock's board said it had not had time to study the offer.
Adcock shares were up 10.84% to R62.29 on Friday following the announcement.
