A trading update released on SENS this morning by Adcock Ingram discloses that the failed bid for the company by Chilean group CFR has cost Adcock shareholders R140m. Only R35m of that amount was written off against expenses in Adcock’s 2013 financial year to end September so the balance will hit the 2014 earnings.
Adcock’s share price dropped 2% in immediate response to the news, falling to R56,70 and widening the book losses of the new controlling shareholder Bidvest, whose consortium bought just under 35% of the business for R70 a share. Bidvest CEO Brian Joffe has been installed as chairman of Adcock Ingram.
The SENS reports says Adcock is “undergoing a re-evaluation of some of its processes and structure”. It adds that the road ahead likely to be bumpy but that Joffe “is optimistic that the operational management will be up to the task of successfully building on the proud history of the company over the short- to medium-term.”
To read Adcock’s full updated trading statement, click here.
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