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VENTURES AFRICA – The chairman of Adcock Ingram (Adcock), Khotso Mokhele, has resigned with immediate effect from the board of South Africa’s second biggest drug-maker, Adcock said on Wednesday morning.
His resignation comes after the diversified industrials giant, Bidvest and the asset manager of government employees pension fund, the PIC, called for his head because the companies held a total of 55,5 percent in Adcock, making them major shareholders.
Prior to his resignation, Mokhele had been the chairman of Adcock for the past seven years.
Adcock however said it apologised for conditions leading to his resignation as director and chairman of the drug-maker.
Yesterday afternoon PIC and Bidvest sent two separate letters to the Adcock board, demanding it appoint executive chairman of Bidvest, Brian Joffe and other three Bidvest directors to its board.
The letters also called on Adcock chairman Mokhele to resign as chair and director of Adcock. Adcock admitted it would make an announcement relating to the appointment of a new chairman in the next few days.
About two weeks ago, the much-talked about attempt by Chile’s CFR Pharmaceuticals (CFR) to acquire Adcock for R12, 8 billion ($1,2 bn) was called off.
Adcock and CFR admitted there was no chance that a deal between them could be permitted to go head by the requisite 75 percent.
The deal was thwarted by the fact that Bidvest, which had been in the running for the acquisition of Adcock, had upped its stake in Adcock to 34, 5 percent last week. PIC holds 21 percent of Adcock.
CFR’s bid needed the endorsement from the shareholders with 75 percent shareholding in Adcock.