PIC clarifies CFR/Adcock stance


This is after the shareholders of Adcock chose to postpone voting on the recently revised CFR offer, which saw the Chilean-based company increase its offer from 73.51 rand to 74.50 rand per share.  

“PIC believes that a lot more value can be extracted for shareholders through changes in the manner in which the company is managed. Furthermore, the offer by CFR to pay  [DATA AIP:Adcock Ingram] shareholders a combination of its shares and cash reduces the potential for current Adcock Ingram shareholders to benefit fully from any turnaround in Adcock Ingram’s financial performance,” said the Public Investment Corporation’s (PIC) chief executive, Elias Masilela.  

“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.  The PIC supports foreign direct investment into South Africa as long as such FDI has predictable long-term benefits for the South African economy.”


The PIC also indicated that it had noted statements made regarding its stance and that it believed those statements to be patently untrue.  

“The Weinstein family currently controls 73 per cent of CFR and although this will be diluted, CFR will remain a family controlled business. 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 on the Chilean Stock Exchange,” Masilela said.

“Finally, the PIC’s primary mandate is to increase the value of funds it manages on behalf of its clients, of which the biggest by far is the Government Employees Pension Fund (GEPF).”