OverviewSecurities holders of AdBEE (RF) Limited (AdBEE) were notified on 31 May 2019 that AdBEE would not initiate the process of extending the Adcock Ingram Broad-Based Black Empowerment Scheme (Scheme) and accordingly the Scheme came to an end on 29 July 2019. The value of a Scheme share did not exceed the maximum price (being R72.00) and therefore, on 1 August 2019, the Scheme transaction, in its entirety, was ipso facto cancelled ab initio.
Scheme participants received call options entitling the holders thereof to subscribe for Adcock Ingram shares, which had to be exercised at any time within the 30 day period prior to the transaction end date. During July 2019, 10 813 call options were exercised and 10 813 ordinary shares were issued.
The cancellation ab initio of the Scheme transaction had the effect that the Scheme shares held by Adizinyosi Proprietary Limited (Ad-izinyosi) ceased to be subject to a pledge and were returned by Ad-izinyosi to AdBEE securities holders. An ex-gratia payment of R10.0 million was made to the Group’s B-BBEE partner (Ad-izinyosi) consequent to the unwinding of the B-BBEE scheme in July 2019.
Subsequently Ad-izinyosi made a payment to its shareholders, as it ceased trading. The Mpho EA Bophelo Trust received R6 124 301, of which R6 081 022 was paid to the Trust beneficiaries.