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BBBEE In Action
Adcock Ingram recently announced the final terms of its BEE Transaction, which facilitates the introduction of additional BEE equity participation in Adcock Ingram. The Company is committed to transformation through the introduction of broad-based BEE equity partners into its business to add to the significant progress it has made in the areas of, inter alia, employment equity, skills development, preferential procurement, socio-economic development and enterprise development. The BEE Transaction is being implemented as part of Adcock Ingram’s committed efforts to achieve the objectives set out in the Department of Trade and Industry’s Codes of Good Practice and in anticipation of future requirements of a Healthcare Charter. Adcock Ingram has concluded a detailed transaction framework agreement that will facilitate the acquisition of an effective 13% of its issued share capital post the Transaction by broad-based BEE groups.
As a leading listed healthcare company in South Africa, it is Adcock Ingram’s intention to embrace broad-based BEE equity participation as a key transformation initiative. Adcock Ingram was guided by the following key objectives in structuring and implementing the Transaction:
- Positioning Adcock Ingram as South Africa’s leading empowered healthcare company
- Supporting Adcock Ingram’s market position and growth strategies (in both the public and private sectors)
- Enhancing Adcock Ingram’s commitment to broad-based empowerment and transformation
- Enhancing healthcare in South Africa
- Maximising Adcock Ingram’s equity ownership scorecard (in terms of the Codes); and
satisfying regulatory requirements
The following BEE groups will participate in the Transaction: - Kagiso Health Consortium and Kurisani Youth Development Trust (“Kurisani”) will participate through one investment vehicle and will indirectly hold interests of 7.15% and 2.60% of Adcock Ingram’s enlarged issued share capital respectively; and
- All permanent black employees of Adcock Ingram and its South African subsidiaries will participate through an employee trust, which will hold a direct interest of 3.25% of Adcock Ingram’s enlarged issued share capital
Please click here for a copy of the Circular to ordinary shareholders regarding the black economic empowerment transaction. More details on the credentials of each of the strategic partners is available on request or through their own websites: www.kagiso.co.za and/or www.lovelife.org.za.
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