Adcock up after chairman resigns

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BRIAN_JOFFE INDEPENDENT MEDIA Bidvest chief executive Brian Joffe . Photo: Leon Nicholas.

Johannesburg - Adcock Ingram, South Africa’s biggest maker of hospital products, rose the most in more than three months after chairman Khotso Mokhele resigned following demands from the two biggest shareholders.

Letters from Bidvest, an owner of catering and car businesses, and the Public Investment Corporation, manager of South African civil servants’ pension funds, also stipulated that Bidvest chief executive Brian Joffe be appointed as an Adcock director.

The two companies own about 56 percent of Adcock after a 10-month fight for control of the company.

The share climbed as much as 3.5 percent to 58.61 rand, the biggest intraday gain since November 15.

The stock traded at 57.39 rand as of 9:42 a.m. in Johannesburg, paring its decline this year to 19 percent.

“The resignation is definitely seen as positive,” Mathew Menezes, an analyst at Avior Research, said in a phone interview.

“It shows that Bidvest is getting involved early to bring change in the company.” - Bloomberg News

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