The board of CFR Pharmaceuticals pledged to give its colored shareholders a 25.1% stake in the firm should the Adcock Ingram acquisition would proceed. The said promise in the ZAR12.6 billion takeover deal is in line with the black economic empowerment (BEE) codes of South Africa. This was according to a report published by Business Day Live.
CFR has been discussing some of the deal's issues with the South African government officials. Among these issues are the extent of the firm's planned investments in the country and shareholding of colored unitholders. The shareholding of colored unitholders in Adcock Ingram is around 15%. For the acquisition to push through, CFR must get at least 75% of the Adcock Ingram shareholders' vote on December 18, the report explained.
Last night, CFR reiterated its commitment to move its manufacturing from Latin America to South Africa. To honor existing labor deals, the firm said it will not retrench staff. CFR also pledged to improve the existing BEE relationships in Adcock Ingram, the report said.
According to Adcock Ingram Chief Executive Officer Jonathan Louw, their facilities passed the standards of the US Food and Drug Administration and local regulators. Because of this, Louw said he did not see any problem in getting approval from the Latin American drug regulators, Business Day Live reported.
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