JOHANNESBURG – Bidvest Group on Tuesday took control of pharmaceutical company Adcock Ingram after its shareholding increased to 50.1 percent following the termination of the company’s broad-based black economic empowerment scheme.
In June, Bidvest announced that it had increased its stake to 43.3 percent after it re-evaluated its strategic options with regard to its Adcock Ingram investment.
But after an extensive period during which Bidvest evaluated ways in which to dispose of its interest in Adcock Ingram, preferably to a new black entrant, funding was not forthcoming.
The company said it therefore concluded, rather than hold a minority stake, that the opportunity existed to further maximise shareholder value by integrating the Adcock Ingram business even closer with its operating philosophy.
Lindsay Ralphs, Bidvest chief executive, was appointed Adcock Ingram chairperson with effect from July 1, 2019. Ralphs said Bidvest concluded that control of Adcock Ingram was strategically much better for it than simply owning it as an associate.
“We are looking forward to an even closer interaction with the Adcock Ingram board and executive management in assessing strategic possibilities in terms of its operations, its quality customer and product portfolio, as well as its exciting growth options,” she said.
“We extend a warm welcome to the 2 600 Adcock Ingram employees into the proudly Bidvest family and we are looking forward to a rewarding future together.”
Adcock Ingram is South Africa’s second largest manufacturer, marketer and distributor in the private pharmaceutical market and is one of the largest suppliers to the public sector.
African News Agency (ANA)