• Adcock Ingram Holdings repurchases 8.1 million shares, equivalent to 4.8% of the company’s issued share capital, enhancing its financial position.
• The repurchase was executed through unrelated transactions on the Johannesburg Stock Exchange (JSE), in compliance with the general authority granted by shareholders.
• The board of directors assures that the company’s financial stability, asset-to-liability ratio, and working capital remain sufficient for ordinary business purposes.

Adcock Ingram Holdings Limited announced today the successful completion of a significant share repurchase program. The company’s subsidiary, Adcock Ingram Limited, has repurchased a cumulative total of 8,108,862 ordinary shares, representing approximately 4.8% of the company’s issued share capital at the time of the general authority, excluding treasury shares. This strategic move was made in accordance with the general authority granted by shareholders at the annual general meeting held on November 22, 2022.

The repurchase transactions were executed through the order book operated by the Johannesburg Stock Exchange (JSE) in a series of unrelated transactions. The highest price paid per share during the repurchase was recorded at R53.00, while the lowest price stood at R49.50. The total value of the shares repurchased amounted to an impressive R416,824,038.

Adcock Ingram Holdings reached the 3% repurchase threshold, as specified by the JSE Listings Requirements, on June 15, 2023. In compliance with this regulation, the company is now required to make a public announcement regarding the repurchase program.

Providing further insight into the repurchase, the dates of the transactions spanned from November 22, 2022, to June 15, 2023. The company has retained the authority to repurchase an additional 379,081 shares, equivalent to 0.2% of the shares in issue at the time the general authority was granted. As of now, the total number of shares in issue is 169,718,861, and the company holds 16,922,821 shares in treasury subsequent to the completion of the repurchase program.

Following a thorough evaluation of the impact of the repurchase, the board of directors of Adcock Ingram Holdings concluded that the company and its subsidiaries will be able to meet their financial obligations in the ordinary course of business for the next twelve months. Furthermore, they affirm that the company’s assets will exceed its liabilities, based on the accounting policies used in the latest audited group annual financial statements. The share capital and reserves are deemed sufficient for ordinary business purposes, while the working capital remains adequate for day-to-day operations.

The funds utilized for the repurchase were derived from available internal cash resources, resulting in a decrease of R419,070,780 in the group’s cash balances, including associated fees. The share capital and share premium will be adjusted accordingly. Additionally, the company anticipates an interest foregone on the cash used for the repurchase, amounting to R1,456,097 after tax, based on an assumed average interest rate of 4.25% earned in the previous financial period. The completion of the repurchase program will reduce the number of shares in issue used to calculate the earnings per share and headline earnings per share by 1,346,501 shares for the financial year ending on June 30, 2023.