CFR to increase Adcock offer - CNBC Africa

CFR to increase Adcock offer

Southern Africa

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CFR Pharmaceuticals is a Chilean pharmaceutical company. PHOTO: Getty Images

The Chilean pharmaceutical company has offered to increase the total consideration payable to Adcock Ingram ordinary shareholders to approximately 12.8 billion rand or 74.50 rand from 73.51 rand per share.

“We have spent a great deal of time engaging with Adcock Ingram’s shareholders in recent months, including the Public Investment Corporation. The strong level of shareholder support is well known.  Notwithstanding this, the PIC, as the largest holder, will play a decisive role in determining the outcome of our offer,” said CFR chief executive Alejandro Weinstein.

“As well as increasing our offer, which will see between 6.4 billion rand and 8.2 billion rand in cash of inward investment into South Africa, we also confirm our original commitments to creating jobs, enhancing black economic empowerment, developing export markets and listing the combined business on the Johannesburg Stock Exchange.”

The Independent Board of Adcock Ingram will propose the adjournment of shareholder meetings, scheduled to take place on Wednesday 18 December 2013. Shareholders will be notified of the new date which is expected to take place around the end of January 2014.

Khotso Mokhele, the chairman of Adcock Ingram, said, “While the Independent Board of Adcock Ingram is and remains unanimously of the opinion that CFR’s current scheme consideration is both fair and reasonable, we nevertheless welcome the notice from CFR to revise its offer. We believe that the partnership with CFR will present a winning combination for shareholders, the company and South Africa at large.”