South Africa's Adcock Ingram confirms takeover bid from CFR Pharma

In what was described as a “cautionary” statement, South Africa’s largest drugmaker Adcock Ingram (AIP: SP), already the subject of significant takeover speculation including from Bidvest (The Pharma Letters passim), has confirmed it has received a non-binding offer from Chile-based CFR Pharmaceuticals to acquire 100% of the firm’s issued share capital.

Adcock says its board of directors has entered into discussions with CRF, with the intention of creating a global emerging markets pharma company that has a presence on four Continents, in an offer of 73.51 rand per share - equivalent to around 12.86 billion rand ($1.3 billion) in total - of the company to be settled in cash and new CFR ordinary shares.