Natco Pharma offers R75 a share to buy stake in, delist Adcock Ingram
Bombay- and New York-listed pharmaceutical manufacturer Natco Pharma has announced a firm intention to acquire 35.75% of the issued ordinary shares in JSE-listed pharmaceutical company Adcock Ingram for R75 a share.
News of the offer sent Adcock Ingram’s shares up more than 20% on July 23.
If the offer is implemented, it would result in the delisting of all ordinary shares of Adcock Ingram from the main board of the JSE, Adcock Ingram and Natco Pharma said in a joint statement.
On a fully diluted basis, JSE-listed diversified industrial company Bidvest will remain the controlling shareholder, owning about 64.25% of the ordinary shares, and Natco Pharma will become a co-shareholder and own about 35.75% of the ordinary shares in the delisted Adcock Ingram.
Through the offer, Natco Pharma will acquire a significant minority shareholding in Adcock Ingram alongside Bidvest. Natco and Bidvest will seek new revenue streams and opportunities for Adcock Ingram to expand its footprint in one of the largest and growing markets on the African continent.
The consideration per share represents a premium of 43.7% to the closing price of the ordinary shares on the JSE on July 22.
The Adcock Ingram independent board, after due consideration of the report of the independent expert, has considered the terms and conditions and has resolved that they are fair and reasonable to the Adcock Ingram shareholders.
Accordingly, it has recommended that shareholders vote in favour of the scheme at an upcoming general meeting.
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