Bidvest Group’s shareholding in Adcock Ingram Holdings has increased to 50.1%, from 43.3%, following the termination of Adcock’s broad-based black economic empowerment scheme.
Bidvest had been evaluating its options with regard to its Adcock investment, including selling its interest to a new black entrant, but funding was not forthcoming.
Bidvest concluded that, rather than holding a minority stake, the opportunity existed to further maximise shareholder value by integrating the Adcock business even closer with the Bidvest operating philosophy.
The company then increased its shareholding to 43.4% in June, before it automatically increased to 50% in August.
Bidvest CE Lindsay Ralphs, who was appointed Adcock chairperson in July, said control of Adcock was strategically much better for Bidvest than owning it as an associate.