Adcock Ingram is to facilitate a R1.3-billion broad based black economic empowerment deal, the JSE-listed drugs manufacturer said on Tuesday.

It added that it would sell a 13 percent stake of its issued share capital to black employees and broad-based BEE groupings — the Kagiso Health Consortium and Kurisani Youth Development Trust.

The BEE partners, who would acquire 75 percent of the transaction, were chosen for their business and broad-based empowerment credentials, as well as for healthcare and education initiatives they provided to underprivileged communities around the country, Adcock Ingram said.

It added that 25 percent of the transaction had been set aside for Adcock's existing and future black employees, who would receive the same entitlement, regardless of their seniority level within the company.

A 'gift of life'

"These qualifying employees will participate through an employee trust, named Mpho ea Bophelo, meaning 'gift of life' in Sesotho and an ideal personification of Adcock's corporate values," the company said.

It added that the transaction would be funded through a combination of unencumbered equity from the BEE partners and vendor facilitation from Adcock Ingram.

"This landmark transaction for Adcock Ingram highlights our commitment to broad-based empowerment and the transformation of South African society," CEO Jonathan Louw said.

"We are delighted to have partners of the calibre of the Kagiso Health Consortium and Kurisani, and look forward to their contribution to Adcock Ingram's quest to add value to life."

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