SA state pension fund lifts Adcock stake

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Picture: Simphiwe Mbokazi

Johannesburg -South Africa's state pension fund has increased its stake in drugmaker Adcock Ingram to over 22 percent, putting the fund closer to being able to single-handedly block a $1.2 billion Chilean takeover bid.

The state-owned Public Investment Corporation (PIC) has raised its Adcock holding to 22.373 percent, Adcock said in a regulatory filing on Tuesday.

The fund previously owned around 19 percent of South Africa's second-largest drugs company.

Santiago-based CFR Pharmaceuticals has bid 12.8 billion rand ($1.24 billion) in cash and shares for Adcock, an offer that requires approval from shareholders holding 75 percent of Adcock.

The deal is almost certain to fail given the combined opposition from the PIC - which has said it does not want CFR shares - and local firm Bidvest, which has built up its Adcock stake to around 7 percent.

Looking to derail the CFR deal, Bidvest has gone straight to Adcock shareholders with an all-cash bid for more than a third of the company.

Shareholders are due to vote on the deal some time next month. Shares of Adcock were down 1 percent at 71.01 rand, closer to Bidvest's offer price of 70 rand than CFR's offer of 74.50 rand.  - Reuters

* This story has been updated. - IOL

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