CFR Advances Equity Raise

Chile’s CFR Pharmaceuticals has approved a $750m equity capital raise, it says. The transaction, done to finance the $1.3bn purchase of South African drugmaker Adcock Ingram, includes 3.0bn shares to be sold at CLP125.0-CLP134.5 ($0.25-$0.27) each. CFR first proposed the bid in July for the South African. It is paying ZAR47.29 ($4.86) cash per Adcock share and issuing up to 15.44 new CFR shares per Adcock share, or a total of ZAR75.92 per share. The deal is expected to generate revenue and cost synergies of up to $440m, would see Adcock delisted from Johannesburg, where CFR would have a secondary listing. Credit Suisse is advising CFR, with IMTrust providing an evaluation of Adcock shares. Deutsche Bank and JPMorgan are advising Adcock.