By Alec HoggÂ
I went on a bit about courage yesterday. How it’s a considered decision to do what is right only after assessing all the facts. An action, a choice of the tougher route rather than the easier, softer way. As fate would have it, two of my studio guests yesterday personified such bravery. One was Kenny Rabson, deputy CEO of Discovery Life.
Rabson’s company insured the life of fraudster Jeff Wiggill whose shenanigans at First Strut turned around R1bn in their bonds into worthless paper. Last year Wiggill’s body was found in Soweto next to his parked Bentley. He had multiple gunshot wounds in his head. His young lover, the named beneficiary in two policies with cover of R18m, wants the money from Discovery. Many companies would have paid up, keep it quiet and move on. Instead, Discovery exposed itself to the negative publicity (which duly came) by insisting on doing the right thing and waiting for the investigation to be concluded. That took courage.
So, too, did Brian Joffe’s R3.9bn purchase of a 30% stake in pharma company Adcock Ingram. In our CNBC Africa interview yesterday Joffe grumbled about the misleading information since dispatched Adcock CEO and chairman put into the market. Had he known what was really going on, Joffe says, he might have acted differently, certainly baulking at the R70 a share Bidvest paid.
But would he still have bought in? Yes. That’s the key. Joffe knows enough about Adcock to commit his own time and energy to a deal worth only 2% of Bidvest’s market cap. And he’s sufficiently committed to chair the board. The same Adcock shares are now freely available through the open market at a 25% discount to what Joffe paid. It doesn’t take too much courage to coat-tail him into the stock. Then sit back and let the Magician of Melrose Arch cast his spells. If you’re patient, there won’t be many better opportunities.
Yesterday’s top stories:Â
Ivo Vegter on public plea for money: My readers saved my life
First Strut’s Jeff Wiggill – R1bn fraudster must be laughing from his grave
Top UK fund manager flees from HSBC (full statement)
Spring clean your life: Know your Big Five priorities – Rob Opie
Louis Group property syndicates: masterminds threaten to sue BizNews
