Adcorp Holdings Limited - Adcorp Sells Corporate C
ADR
ADR
Adcorp Holdings Limited - Adcorp Sells Corporate Communications Division
Adcorp Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1974/001804/06)
("Adcorp" or "the Company")
Share code: ADR & ISIN: ZAE000000139
ADCORP SELLS CORPORATE COMMUNICATIONS DIVISION
JSE listed company, Adcorp Holdings Limited, announced today that it has sold
its Corporate Communications division to a consortium led by the senior
management and staff of that division in a deal which is still subject to a
"fair and reasonable" opinion but is expected to be worth around R 13 million.
The division comprises leading public relations company Simeka TWS and graphic
design business, Graphicor.
"Adcorp, which is primarily involved in the South African staffing industry,
took the decision to dispose of these operations in order to better focus on its
core staffing operations which contribute in excess of 90% of Group profits",
says Adcorp CEO, Richard Pike.
Adcorp is the biggest player in the South African staffing industry trading
under its leading brands Quest, Emmanuels, Capacity, DAV, Premier Personnel, The
Oval Office, Grey Consulting, Charisma and Adcorp Talent Resourcing as well as
its associate company, Career Junction.
"The staffing industry has shown significant growth over the past few years and
is expected to continue growing at this rate for the foreseeable future. In
order to take full advantage of the opportunities presented by this high growth
industry, it makes sense to focus all our efforts and energies exclusively in
this area" says Pike.
The management buy out of the Corporate Communications division has been
assisted and facilitated by Adcorp with the major beneficiaries of the buy out
being black management and staff. The buy out consortium is headed by the
current divisional director, Thendo Ratshitanga.
Pike stresses that, although Adcorp will no longer have direct ownership of
these businesses, the Group will remain involved in advising management and in
assisting with the funding of the transaction as part of its commitment to
enterprise development in terms of the current Broad Based Black Economic
Empowerment (BBBEE) Codes of Good Conduct.
"With our new impressive empowerment credentials, our leading brands and
substantial delivery capability, we are uniquely positioned in the corporate
communications space which should bode well for our future" says Ratshitanga.
Once the "fair and reasonable" opinion has been received and the transaction
finalized Adcorp will communicate further with stakeholders.
30 June 2006
Sponsor: Deloitte & Touche
Date: 30/06/2006 05:05:05 PM Produced by the JSE SENS Department
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