Johannesburg - South African drug maker Adcock Ingram said on Wednesday about 45 percent of its shareholders have backed a $1.3 billion takeover offer from CFR Pharmaceuticals, paving the way for a rare Chile-South Africa tie up.
CFR said last month it would offer up to 75.92 rand per Adcock share, with a minimum of 47.29 rand in cash and the balance paid in new CFR shares.
While Adcock's board supports the offer, there have been doubts about whether the deal will go through.
Adcock's top shareholder, the state-owned Public Investment Corporation, has said it would prefer a local owner.
“This is a high level of support given the fragmented nature of the company's shareholder base,” Adcock and CFR said in a joint statement.
It was not immediately clear if the Public Investment Corporation, which owns about 14 percent the Adcock, is among the 45 percent of shareholders who have pledged their support for the deal.
Shares in Adcock gained 1.54 percent to 71.08 rand by 15:54 SA time, outpacing a slightly higher All-Share index.
If the deal goes through, the combined company would have annual revenue of about $1.3 billion with exposure to 2 billion patients in more than 23 countries. - Reuters