| HOME
|
Adcock makes offer to buy 51 percent in Ghana company
November 24, 2009
By SLINDILE KHANYILE
Adcock Ingram has identified its first acquisition target to continue its African expansion programme.
The pharmaceutical firm has made an offer to purchase at least 51 percent of Ayrton of Ghana for R178.4 million.
Adcock said it has made an offer for the entire issued capital of the West African pharmaceutical manufacturer to the board of directors subject to it obtaining a minimum of 51 percent.
Ayrton is the second largest drugs company in Ghana and it is listed on the country’s stock exchange.
It makes a range of products and some of its brands are Paracetamol syrup, Virol and Teedar.
Its turnover last year was R61.8 million which was a 26 percent increase compared to 2007.
“There is a great cultural fit between both of us and we get on very well with the management team. Their plans to grow in places like Nigeria and Senegal are in line with our plans,” said Jonathan Louw, chief executive at Adcock Ingram.
Adcock has received written undertakings to accept the offer from shareholders holding 52.3 percent of the entire issued capital of Ayrton.
The company’s entry into Africa began with an office in Kenya which employs 24 people to help it grow in East Africa.
Louw said it was their plan to have 20 percent to 30 percent of revenue coming from outside South Africa.
If this transaction goes through, it will help Adcock to drive its growth which has continued despite the economic meltdown.
In the year ended September, the company grew turnover by 21.3 percent to R4 billion benefiting from a 12 percent volume growth.
Headline earnings went up by 16.5 percent to R779.3 million while headline earnings per share rose by 16.1 percent to 450 cents. Earnings per share improved 19.3 percent to 451.7 cents.
During the 2009/10 financial year, the group will spend R555 million on fixed assets. Its cash reserves are R693 million and it declared a final dividend of 80 cents a share.
|
|
|
|
News
Markets
Technology News
Company News
International
Today's Quote
"Make no mistake, they are bowed, but not completely beaten" Who said that?
|
Business Forum
Keep an eye on the stock exchanges - and your investments - from our markets page.
|
Belt tightening has made a dent even in those industries aimed at making people look prettier, perkier, poutier and, of course, younger.
Read more ...
|
|
