Bidvest’s proposed scheme of arrangement to acquire a 60% stake in pharmaceuticals group Adcock Ingram has lapsed and there was no indication that a new proposal from Bidvest “will be forthcoming”, Adcock advised its shareholders on Thursday.
The proposal was subject to the condition that “by not later than April 2, 2013, Bidvest receive an undertaking by the board of directors of Adcock Ingram to cooperate with Bidvest in the implementation of the transaction and in particular to propose a scheme”.
The Adcock board advised its shareholders that, as there was no longer a proposal from Bidvest before the Adcock board and currently no indication that a new proposal would be forthcoming, it had withdrawn its cautionary announcement.
JSE-listed Bidvest announced on March 22 that it intended to increase its 2.54% stake in Adcock Ingram to 60% in a cash-and-share deal valued at about $700-million.
Bidvest then indicated its willingness to go hostile after the drugmaker's board snubbed its bid, slamming the offer for a 60% stake as "opportunistic" and saying it lacked sufficient details for the board to make a recommendation to shareholders.
Adcock on Thursday said that while the independent board retained an open mind regarding a new proposal from Bidvest, it would expect any new proposal to address not only the legal deficiencies but also the other material concerns raised by it in its letter of response to the Bidvest proposal.