Adcock Ingram Climbs Most in Three Months After Chairman Resigns

Adcock Ingram Holdings (AIP) Ltd., South Africa’s biggest maker of hospital products, rose the most in more than three months after Chairman Khotso Mokhele resigned following demands from the two biggest shareholders.

Letters from Bidvest Group Ltd. (BVT), an owner of catering and car businesses, and the Public Investment Corp., manager of South African civil servants’ pension funds, also stipulated that Bidvest CEO Brian Joffe be appointed as an Adcock director. The two companies own about 56 percent of Adcock after a 10-month fight for control of the company.

The share climbed as much as 3.5 percent to 58.61 rand, the biggest intraday gain since Nov. 15. The stock traded at 57.39 rand as of 9:42 a.m. in Johannesburg, paring its decline this year to 19 percent.

“The resignation is definitely seen as positive,” Mathew Menezes, an analyst at Avior Research, said in a phone interview. “It shows that Bidvest is getting involved early to bring change in the company.”

To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

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