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Adcock Biggest Investor Said to Reject Share Portion of CFR Bid

Nov. 11 (Bloomberg) -- Public Investment Corp., the largest shareholder in South African drugmaker Adcock Ingram Holdings Ltd., doesn’t want CFR Pharmaceutical shares as part of a $1.2 billion takeover offer by the Chilean company, according to a person familiar with the fund manager’s decision.

PIC, South Africa’s biggest money manager with an 18.6 percent stake in Adcock, would prefer an all-cash offer, the person said, declining to be named because its discussions about the proposal haven’t been made public. The possibility of Adcock falling under foreign ownership as a result of a takeover by Santiago-based CFR isn’t an issue, the person said.

CFR, Chile’s largest drugmaker, said in July it would pay 12.6 billion rand ($1.2 billion) in cash and shares for Adcock as it seeks to expand in other emerging markets. The company said it would settle as much as 51 percent to 64.3 percent of the purchase through cash and the balance with new CFR shares.

PIC said on Nov. 6 it wouldn’t support the proposal because it wasn’t in the investor’s best interests. Adcock needs 75 percent of its shareholder base to back the deal for it to go ahead, its chairman Khotso Mokhele said in September. The company has received support from 45 percent of investors, it said Oct. 30.

Adcock declined 0.8 percent to 67.60 rand as of 1:21 p.m. in Johannesburg. The CFR offer values the drugmaker at 73.51 rand per Adcock share, according to both companies.

PIC didn’t immediately respond to an e-mailed query seeking further comment. The company oversees the pension funds of South African government workers.

To contact the reporter on this story: Christopher Spillane in Johannesburg at

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