Bidvest looks to acquire 100% of Adcock - CNBC Africa

Bidvest looks to acquire 100% of Adcock

Southern Africa

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Bidvest CEO, Brian Joffe says Adcock has got potential as a company. PHOTO: Financial Mail

This is after the healthcare company revealed the termination of its existing BEE transaction and the implementation of a new BEE transaction on Monday.

As a result of this, Blue Falcon Trading and the Mpho ea Bophelo Trust will collectively retain 2,571,000 dividend-acquired Adcock ordinary shares.

“Bidvest has agreed with Blue Falcon and the Bophelo Trust to purchase the dividend shares at 52.00 rand per Adcock ordinary share for cash,” it said.

(WATCH VIDEO: Bidvest mulls raising Adcock stake to majority)

“This purchase however requires such dividend shares to be released from the restrictions contained in the existing Adcock BEE transaction.”

According to the company, the board of directors of Adcock has consented to the release of the shares subject to Adcock ordinary shareholders approving the cancellation of the existing Adcock BEE transaction, among others.

“Furthermore, the making of the proposed offer will remove the uncertainty surrounding Bidvest’s intention to acquire the remaining Adcock ordinary shares that it does not already own,” [DATA BVT:Bidvest] added.

“The proposed offer will be made in due course in compliance with the relevant regulatory requirements and will be conditional upon such regulatory approvals and/or consents as may be required.”

The international services, trading and distribution company revealed in its 2014 Annual Integrated Report that it had written down its investment in Adcock, involving a sum of approximately one billion rand.

However, in a recent interview with CNBC Africa, Bidvest group chief executive, Brian Joffe stated that [DATA AIP:Adcock] has got potential as a company.

“There’s a lot of hard work that’s going to have to go into making it a successful company and to get it back to where it was in its former years,” he cautioned.

“What we found versus what we thought we’d find – there was some disappointment and I suppose we have got some criticism ourselves to take because we did this thing with very little outside information other than what the company published.”

He added that Bidvest may have also underestimated the fact that, at the time, South Africa’s takeover rules weren’t geared up for this type of event.

“Wherever we went, we were testing new laws all the time – we had a new companies act, the TRP was testing new ground and it obviously didn’t work all that well,” Joffe said.

“At the end of the day, you’ve got to have mistakes and this may not be – time will tell.”

(READ MORE: Adcock Ingram HEPS up 38%)

Joffe further indicated that Adcock is currently focusing on some of the problems that it has.

“Management understands where the issues are and that obviously will enable them to address it. There are a few things that have got to be done, they are quite big things and over time, hopefully we will get it right,” he stated.

“The day-to-day execution, we are not involved in and we don’t really technically control the company right now. We obviously would like to, over time, get more but it’s one of those things that’s got to be played by ear.” 

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