OverviewThis short introduction should be read in conjunction with the Scheme circular to Adcock Ingram shareholders dated 28 May 2016.
Adcock Ingram has always been supportive of, and committed to, the concept of Black Economic Empowerment (BEE), which is a South African national and business imperative.
On 27 July 2015, the AdBEE scheme came into effect to replace the old BEE scheme. The new scheme is the product of a deal between Ad-izinyosi, Adcock Ingram and AdBEE.
Ad-izinyosi, a new broad-based empowerment entity owned by a consortium of prominent entrepreneurial black businesses and Adcock Ingram eligible black employees, was established for the sole purpose of owning Adcock Ingram ordinary shares as part of this new BEE deal. Ad-izinyosi has become the registered owner of 25 842 959 ordinary shares, being approximately 15% of the total issued share capital of Adcock Ingram.
AdBEE was established for the specific purpose of issuing the AdBEE Securities to the Scheme participants. The AdBEE Securities are listed on the main board of the Johannesburg Stock Exchange (JSE) as an asset backed security in the specialist securities – “asset backed securities” under the name “ADE”.
This new scheme positions Adcock Ingram for improved participation in private and public sector opportunities, thereby providing an enhanced platform for growth. Further benefits of the new AdBEE scheme include the meaningful participation in the Adcock Ingram business for BEE participants, including employees. The new BEE deal is also considered to be more sustainable than the previous BEE scheme.
Please refer to the Scheme Circular in this section for further detail.