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South African pharmaceutical company Adcock Ingram has unveiled a
broad-based black economic empowerment (BEE) deal in which a 13% stake
in the company, worth about R1.3-billion, will be transferred to two
empowerment partners and the company's black employees.
The BEE partners, who will acquire 9.75% of the company's issued
shares, were chosen for their business and empowerment credentials, as
well as for healthcare and education initiatives they provide to
underprivileged communities around the country.
"This landmark transaction for Adcock Ingram highlights our
commitment to broad-based empowerment and the transformation of South
African society," Adcock Ingram CEO Jonathan Louw said in a statement
this week.
Respected service providers, LoveLife
One of the chosen partners is the Kagiso Health Consortium, which
comprises Kagiso Trust Investments, a respected NGO with a significant
track record in financing and managing community development projects,
and Mookodi Technologies, a 10-year old black-owned provider of
healthcare products and services.
With the Kagiso Trust having been involved in various community
primary healthcare projects over the past 20 years, trust director
Afzal Patel said it was only natural that they partnered with a truly
South African healthcare provider whose values mirrored their own.
The other empowerment partner is Kurisani Youth Development Trust,
the investment arm of LoveLife, South Africa's national HIV/Aids
prevention campaign.
Kurisani was established to benefit the youth passing through
LoveLife's development and empowerment programmes, and the
organisation's youth healthcare initiatives extend deep into South
Africa.
"Adcock Ingram's partnership with us is an investment in an
Aids-free motivated generation of young South Africans," said LoveLife
Trust CEO Grace Mathlape, addding that the proceeds from Kurisani's
empowerment transactions provided the long-term funding needed to
sustain LoveLife and enhance its programmes.
"We are delighted to have partners of the calibre of the Kagiso
Health Consortium and Kurisani, and look forward to their contribution
to Adcock Ingram's quest to add value to life," said Louw.
Employee share scheme
As part of the transaction, 3.25% of the company's enlarged issued
share capital has been set aside for its existing and future black
South African employees, who will receive the same entitlement,
regardless of their seniority level within the company - which Louw
described as "groundbreaking".
"[The scheme] was designed specifically with the intention of
uplifting historically disadvantaged South Africans and adheres to the
latest King 3 guidelines," he said. "A factory worker, for instance,
will get the same number of shares as a senior executive."
The transaction will be funded through a
combination of unencumbered equity from the BEE partners and vendor facilitation from Adcock Ingram.
The company expects the transaction to be implemented by the end of
March 2010, subject to the fulfilment of certain conditions, including
approval by company shareholders.
source SAinfo
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