The international services, trading and distribution company and Community Investment Holdings Proprietary Limited (CIH) have made a cash offer to acquire up to 34.5 per cent of the issued ordinary shares in [DATA AIP:Adcock Ingram Holdings Limited].
“Given CIH’s strong pharmaceutical credentials and Bidvest’s track record of value enhancing investments and strong empowerment credentials, we believe that the consortium has the credentials to add value to Adcock, something which is clearly required,” said Bidvest Group Limited chief executive Brian Joffe.
Bidvest currently owns four per cent of the issued ordinary shares in Adcock, excluding treasury shares, while CIH, a fully compliant BEE company operating in South Africa’s pharmaceutical sector, has operations in South Africa as well as sub-Saharan Africa.
Anna Mokgokong, group executive chairperson for CIH, founded the company along with Joe Madungandaba.
“CIH’s participation in the pharmaceutical sector dates back as far as 1992, when CIH entered the pharmaceutical wholesale arena. It has since operated with the objective of growing and progressing these interests to establish a stronger national and African presence,” she said.
“The entry into Adcock provides a further platform off which to leverage to achieve these objectives. CIH is a Level 1 BEE contributor and, as regards its pharmaceutical interests in particular, has adopted a strategy of increasing efficiencies in local pharmaceutical production and job creation.”
The offer is unconditional and open immediately. Should it be accepted, Adcock shareholders participating in the offer will immediately receive an upfront cash consideration of 70 rand per Adcock ordinary share.
The direct investment by the consortium of approximately four billion rand will be funded by way of available cash resources.
The consortium further announced that Bidvest would launch legal proceedings to challenge compliance with the legal and regulatory aspects of the CFR/Adcock transactions.