Bidvest looks set to take all of Adcock Ingram after the healthcare company gets out of the existing deal with BEE, according to CNBC.
As part of the prior agreement, Blue Falcon Trading Trust and Mpho ea Bophelo Trust will keep over 2 million dividend-acquired Adcock shares. Bidvest is preparing to acquire Adcock but said restrictions need to be removed from dividend shares related to the BEE transaction.
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Bidvest CEO Brian Joffe told CNBC, “There’s a lot of hard work that is 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 added, “we did this thing with very little outside information.” Joffe explained that South Africa’s takeover rules were not structured in a way to anticipate this kind of deal.
Last June, Joffe discussed the possibility of listing the company’s food service business on the London Stock Exchange while the market was “buoyant” and borrowing was “cheap” according to Business Daily. Management decided that the move was not in the best interests of the company.
