Chileans up the bid for Adcock

2013-12-15 14:00

Despite the chief executive of Chilean pharmaceutical company CFR, Alejandro Weinstein, claiming “amazing levels of support” from Adcock shareholders in his bid for the drug company, CFR increased its offer for Adcock from R73.51 to R74.50 a share.

The date for shareholders to vote on the deal has also been changed from December 18 to sometime next month to provide shareholders time to decide on the revised offer.

In a conference call on Friday, Weinstein said one of the reasons for the revised offer was to appease Adcock’s largest shareholder, the Public Investment Corporation (PIC), which has indicated it would not support the deal as it was.

Weinstein said CFR had been engaging with the PIC and had met with them in the past two weeks, but would not comment on whether the price was the only issue for the PIC.

The offer coincided with the day Adcock was to receive proxy votes for the deal, but Weinstein denied speculation that they had not received enough support by proxy and claimed he did not know what the proxy vote was.

Weinstein also said the revised deal has nothing to do with a rival bid from a consortium including industrial services giant Bidvest and Community Investment Holdings (CIH).

The consortium made a “first come, first served” offer of R70 a share for up to 39.5% of Adcock’s issued share capital two weeks ago.

Anna Mokgokong, the executive chairperson of CIH, said: “To us it’s a sign they did not receive the 75% [needed for the deal to pass] and it encourages us to perfect our offer and not be discouraged. It shows there are shareholders applying their minds.”

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