Brian Joffe of Bidvest is a smart operator, nobody disputes that. But his proposed deal to acquire 60% of Adcock Ingram is especially masterful, even by his standards. The price premium is a modest 10% on the Adcock share price before the deal was announced, hardly enough for a controlling stake. But the way it has been structured makes me think it has every chance of succeeding. Adcock has been a major disappointment over the last couple of years and if shareholders agree to the deal they will get some Bidvest shares (and Adcock will be about 10% of Bidvest after the deal), they also get some cash but most importantly they keep 40% of their holding. This last part is important, as it means shareholders can stay invested and one has to assume that with Bidvest in charge, the fortunes of Adcock will markedly improve. Beleaguered shareholders will finally start to see some reward. firstname.lastname@example.org
*The writer owns shares in Capitec.