A private equity firm which supposedly invested $18 million in Healthplus, the pharmacy chain in Nigeria, claimed the management of Healthplus is not executing as desired. Healthplus Management disputes that assertion, maintaining it was an excuse to do something horrible to the firm. As that happens, litigation is flaring up. The PE, Alta Semper Capital, has “changed” the CEO of the company, and claiming to be the majority shareholder, plans to take control of the company operations.
It is a total mess, and I mean a big mess, after a supposedly $18 million investment. This does not look good at all. Someone needs to call Bukky George and the Private Equity (PE) firm that they need not do this on the media before partners panic, pull supplies and destroy this company.
From the PE, Alta Semper Capital LLP:
The Board has been exploring the optimal way to grow the business for some time, in collaboration with Mrs. George. Unfortunately, we have been unable to reach an agreement, which has hindered the operations of the Company and delayed the implementation of its growth plans. With the onset of the COVID pandemic, the rapid acceleration of the digital economy and the increased relevance of the healthcare sector as a whole, it has become urgent to ensure the Company is optimally positioned to grow and able to take advantage of new and emerging opportunities. As a result, we have taken the strategic decision to change our leadership.
The Healthplus responds:
“We wish to inform the general public, the Pharmacists Council of Nigeria, our staff, loyal customers, vendors, landlords, bankers and all stakeholders that the press release was not authorised by the Company or anybody acting on its behalf. And that the announcement of the appointment of a CTO is wholly false, wrongful and illegal and should be totally ignored.
It is the handiwork of unscrupulous foreign and local businesswomen and businessmen intent on reaping where they have not sown simply because they now see opportunities from the COVID-19 pandemic, like scavengers and vultures,” HealthPlus Management
This update claims the PE is the majority shareholder. If that is so, it changes everything. Yet, they need to explore how arbitration can help resolve their differences as they are destroying value doing this on air.
Alta Semper Capital, which controls the majority shareholding in HealthPlus, the Nigerian headquartered leading West African pharmaceutical chain, is planning to inject fresh funds into the business, it has been confirmed.
Information about this plan is coming amid the announcement of the appointment by secondment of Chidi Okoro as HealthPlus’s Chief Transformation Officer with a mandate to “optimize day-to-day management and elevate the business to novel scale and profitability,” the company said in a statement it issued through its media consultants.