All hail Brian

Finweek English Edition - - INVESTMENT -

SO WHY BUY a con­tin­u­ally un­der­per­form­ing phar­ma­ceu­ti­cal com­pany when the idea is to al­ways buy win­ners? The an­swer is sim­ple: Brian Joffe. Joffe, via his Bid­vest con­sor­tium (which in­cludes CIH), now has just over a third of Ad­cock at R70 per share and you can be very sure he’ll want to make money off this in­vest­ment.

The re­al­ity is that he may fail (un­likely but pos­si­ble) and he doesn’t have ef­fec­tive con­trol, but the 34.5% stake makes him the largest share­holder and hence he has neg­a­tive con­trol. Tak­ing the PIC into ac­count, it has +50%, al­beit it has to be care­ful to not be work­ing in con­sort oth­er­wise it may be deemed to have col­lec­tively crossed the 35% level that would re­quire an of­fer to mi­nori­ties.

Many will sug­gest that buy­ing Bid­vest is a much cleaner way of ben­e­fit­ting from the busi­ness abil­ity of Joffe and while that is largely right, Bid­vest’s size means that it has to be a mas­sive deal to move the nee­dle.

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