Fri Dec 20, 2013 4:21am EST
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<span id="midArticle_0"/>JOHANNESBURG Dec 20 (Reuters) - South Africa's state pension fund said on Friday it remained opposed to a $1.2 billion cash and stock takeover offer for local drugmaker Adcock Ingram from CFR Pharmaceuticals, saying it did not want shares in the Chilean company.
<span id="midArticle_1"/>Opposition from the state-run Public Investment Corporation (PIC), the top shareholder in Adcock, is almost certain to derail the rare Chile-South Africa tie-up that requires approval from shareholders holding 75 percent of Adcock.
<span id="midArticle_2"/>PIC Chief Executive Elias Masilela said in a statement CFR's offer reduces the potential for Adcock shareholders to benefit from a turnaround in the struggling company.
<span id="midArticle_3"/>"We believe that CFR shares are fully valued whilst Adcock Ingram's share price has the potential to rise substantially in value through better management," Masilela said.
<span id="midArticle_4"/>The PIC owns around 19 percent of Adcock.
<span id="midArticle_5"/>Masilela also voiced concerns about CFR as a family-controlled business, as the founding Weinstein family controls around 73 percent of CFR.
<span id="midArticle_6"/>"Given our experience of corporate governance challenges with some family-controlled businesses locally, we believe this introduces risks to the investment, especially considering the short listing history of CFR," he said.
<span id="midArticle_7"/>Shares of Adcock were little changed at 70.51 rand at 0915 GMT, compared with CFR's cash and share offer of 74.50 rand. (Reporting by Tiisetso Motsoeneng and David Dolan; Editing by Ed Stoddard)
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<span id="midArticle_0"/>JOHANNESBURG Dec 20 (Reuters) - South Africa's state pension fund said on Friday it remained opposed to a $1.2 billion cash and stock takeover offer for local drugmaker Adcock Ingram from CFR Pharmaceuticals, saying it did not want shares in the Chilean company.
<span id="midArticle_1"/>Opposition from the state-run Public Investment Corporation (PIC), the top shareholder in Adcock, is almost certain to derail the rare Chile-South Africa tie-up that requires approval from shareholders holding 75 percent of Adcock.
<span id="midArticle_2"/>PIC Chief Executive Elias Masilela said in a statement CFR's offer reduces the potential for Adcock shareholders to benefit from a turnaround in the struggling company.
<span id="midArticle_3"/>"We believe that CFR shares are fully valued whilst Adcock Ingram's share price has the potential to rise substantially in value through better management," Masilela said.
<span id="midArticle_4"/>The PIC owns around 19 percent of Adcock.
<span id="midArticle_5"/>Masilela also voiced concerns about CFR as a family-controlled business, as the founding Weinstein family controls around 73 percent of CFR.
<span id="midArticle_6"/>"Given our experience of corporate governance challenges with some family-controlled businesses locally, we believe this introduces risks to the investment, especially considering the short listing history of CFR," he said.
<span id="midArticle_7"/>Shares of Adcock were little changed at 70.51 rand at 0915 GMT, compared with CFR's cash and share offer of 74.50 rand. (Reporting by Tiisetso Motsoeneng and David Dolan; Editing by Ed Stoddard)
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