Bidvest bids for 60% of Adcock

Johannesburg - South African industrial firm Bidvest on Friday offered to lift its stake in drug firm Adcock Ingram to 60 percent in a cash and share deal worth about $700 million.

Bidvest, which currently owns 2.5 percent 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 65 rand 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 percent to 62.15 rand on the news.

Shares of Bidvest fell 2 percent to 237.50 rand.

Based on the offer price of 65 rand per share, the stake would cost nearly 6.5 billion rand ($700 million), 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 percent of its sales outside South Africa in three years.

Adcock's board said it had not had time to study the offer. - Reuters