UPDATE 1-Chile CFR shareholders approve $750 mln for South Africa deal

Mon Jul 22, 2013 10:14am EDT

SANTIAGO, July 22 (Reuters) - Shareholders of Chilean pharmaceutical company CFR on Monday approved a roughly $750 million capital increase to help fund the company's planned purchase of South Africa's Adcock Ingram Holdings Ltd.

CFR this month made a $1.3 billion bid to acquire all of Adcock's shares, in what could be a rare tie-up between Chile and South Africa.

"The transaction would be financed through the capital increase, as well as our own resources and long-term debt," Alejandro Weinstein, CFR's president, said during the shareholder meeting.

South Africa's Public Investment Corporation (PIC), which manages the pension of government employees and owns about 14 percent of Adcock, making it the top shareholder, said it would prefer a buyout by a local player.

CFR's shareholders on Monday also approved listing the Chilean company in South Africa.

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