June 29, 2016 / 4:06 PM / 2 years ago

Brazil's Estácio holder Coronation backs Kroton takeover bid

SAO PAULO, June 29 (Reuters) - Clients of South African investment firm Coronation Fund Managers have endorsed Kroton Educacional SA’s revised unsolicited takeover bid for smaller rival Estácio Participações SA, amid a fierce battle for control of Brazil’s No. 2 for-profit education company.

Suhail Suleman and Gavin Joubert, co-managers of Coronation’s Global Emerging Markets Strategies Fund, said in a statement that the Kroton proposal, which was announced last week, was “the more preferable option for Estácio shareholders over the long term.”

Coronation is a shareholder of both Kroton and Estácio.

The firm had warned Estácio’s board against demanding an unreasonable premium to the revised offer if that could jeopardise the deal, the statement said.

Reuters reported on Tuesday the fund had sent a letter to Estácio’s board backing the Kroton proposal, citing a source. (Reporting by Tatiana Bautzer; Editing by Lisa Von Ahn)

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