Johannesburg - The board of South Africa's Adcock Ingram on Wednesday said it would recommend a $1.3 billion cash and share offer from Chile's CFR , a move that is likely to cement the tie-up between the emerging markets drugmakers.
The two companies said in a statement the deal would value Adcock shares at up to 75.92 rand a share.
Adcock's shares rose 3.3 percent to 68.16 rand by 16:30 SA time.
CFR would pay as much as 47.29 rand in cash per Adcock share and issue up to 15.44 new CFR shares per Adcock share.
The deal, which would generate revenue and cost synergies of up to $440 million, would see Adcock delisted from Johannesburg, where CFR would have a secondary listing, the companies said.
CFR said it would transfer the manufacturing of certain products to South Africa, a move that would likely create jobs and could help win over South African regulators.
South Africa has a history of sinking cross-border deals if they are seen to threaten government initiatives aimed at raising living standards among the country's black majority.
South Africa's government pension fund and Adcock's biggest shareholder, the Public Investment Corporation, said in July it would prefer a local buyer for the company. - Reuters