Shareholders in pharmaceutical company Adcock Ingram have voted overwhelmingly to give an offer by Natco Pharma the green light.
At a general meeting last week, 98.66% of shares were voted in favour of the offer by Natco Pharma for all the issued ordinary shares in Adcock Ingram other than those not already held by Natco, those now owned by Bidvest and treasury shares.
Adcock will soon delist from the JSE and operate as a privately held company after Indian pharma firm Natco offered R75 per share for a stake of about 36% in July. Adcock has been listed since 2008.
The offer was at a 44% premium to the closing price on July 18, valuing the stake in Adcock at about R4.2bn. Bidvest will retain its 64% of the company.
Natco Pharma, founded in 1981 and based in Hyderabad, is listed on the Bombay and national stock exchanges in India. The company specialises in generic and oncology medicines.
It operates globally, with a presence in international markets including the US, Europe, Canada, Latin America, Southeast Asia, and the Middle East and North Africa.
In partnership with majority shareholder Bidvest, the Indian drugmaker plans to tap into Adcock’s existing infrastructure and regional expertise. The deal has received the backing of Adcock’s independent board, which has recommended the offer to shareholders, calling the terms fair and reasonable.
The scheme remains subject to the fulfilment or waiver of the outstanding conditions precedent. Once it becomes unconditional and the Takeover Regulation Panel has issued a compliance certificate, Adcock Ingram’s shares will be delisted from the JSE.
Adcock reported a rebound in the second half of its financial year after a subdued first six months, underpinned by demand for its over-the-counter (OTC) and consumer healthcare products
Still, the maker of medicine staples such as Panado, Corenza-C and Compral reported little change in operating profit and headline earnings for the 12 months ended June 30.
Revenue was up 1% year on year to R9.76bn, with strong demand for the so-called winter basket of consumer necessities, a well-executed informal sector strategy and normal buying patterns among pharmacy wholesalers.
CEO Andy Hall said the group experienced strong demand across all its business units.
With Lindiwe Tsobo
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