Finweek English Edition - - INVESTMENT - Simon Brown

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. si­monb@fin­


*The writer owns shares in Capitec.

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