Drama As HealthPlus Accuses Foreign Firm of Hostile Business Takeover

HealthPlus, a leading pharmaceutical firm, has accused Alta Semper Capital, a foreign private equity firm (PEF), of a fraudulent and hostile attempt to take over its business.

In a rejoinder to a press release earlier issued by the PEF, HealthPlus dismissed the appointment of Chidi Okoro as chief transformation officer and the claim that Olubukunola Adewunmi George, chief executive officer, remains a director and shareholder

HealthPlus stated that it entered into a five-year partnership with Alta Semper Capital in 2018 to inject fresh capital to further grow the business.

George, the rejoinder stated, was prepared to give Alta Semper Capital a controlling stake in order for them to realise their investment.

However, it added, Alta Semper Capital started working on schemes aimed at taking over the business after seeing the vastness of the Nigerian market.

Alta Semper Capital, according to HealthPlus, deliberately starved the company of funds, neglected its obligations to the business, appointed Okoro as CTO, and was running the company in utter disregard for George’s wishes.

The Chairman of the Board of Directors was said to have resigned two days ago while another director resigned five weeks ago over the debilitating effect of the impasse on the company.

The rejoinder stated that George had, in May 2020, instituted a suit at the Federal High Court (FHC/L/CS/609/2020) seeking to stop HealthPlus Africa Holdings Limited (the investment vehicle used by Alta Semper Capital and which they control) and their nominee directors from continuing to run and manage the company with disregard to her interests as a member of the Company.

After being served the court summons, Alta Semper Capital appealed for mediation of the crisis outside court, a process frustrated after three meetings in three months.

Alta Semper thereafter filed an arbitration claim in England.

“Alta Semper’s latest actions, including the arbitration claim that it has now filed, constitute a serious affront to the authority of the Court seised of the suit, a desecration of the integrity of the Nigerian judicial system and a gross violation of Nigeria’s extant legislation.

“The General Public, the Pharmacists Council of Nigeria, our Staff, loyal Customers, Vendors, Landlords, Bankers and all Stakeholders are advised to totally disregard and ignore the earlier unauthorised Press Release from those who have no real stake in the Company, its employees or Nigeria.

“Mrs. Bukky George remains the Founder & CEO of the Company and is focused on preserving and growing this national treasure,” the rejoinder read.

Alta Semper Capital press release on the appointment of Chidi Okoro as CTO

HealthPlus Limited has appointed Chidi Okoro as Chief Transformation Officer.

Mr. Okoro’s mission is to optimize day-to-day management and elevate the business to novel scale and profitability. The founder of the Company Mrs. Bukky George continues to be a director and a shareholder.

Leading healthcare and consumer private equity firm Alta Semper Capital, which controls the majority shareholder of HealthPlus, has simultaneously announced its continued commitment to the Company and desire to inject fresh capital to accelerate growth and utilize emerging opportunities in global healthcare.

Following the onset of the COVID-19 pandemic, HealthPlus’ strong brand, diverse product mix and wide footprint uniquely position the business to be on the forefront of supply chain innovation and strategic expansion.

Reacting to the appointment, Okoro said, “I would like to recognise HealthPlus’ role in spearheading the evolution of modern pharmacies across Nigeria and scaling retail capabilities in the industry overall. I am incredibly excited to now have the opportunity and the resources to take the platform to the next level, at a time of unrivalled opportunity for the sector. I look forward to working with all stakeholders to achieve even greater things in the future.”

Mr. Okoro is a licensed pharmacist and management executive with over thirty years of multinational and multisector experience, spanning leadership roles in pharmaceuticals, personal care, food, and telecommunications.

Alta Semper Capital Investment in HealthPlus

In 2018, Alta Semper, a private equity manager investing flexible and strategic capital across select African growth markets, announced that it has entered into a partnership with Nigeria’s leading retail pharmacy chain HealthPlus.

Under the terms of the agreement, Alta Semper is investing US$18 million into HealthPlus, which will enable the company to expand its retail footprint and enhance its competitive position.

Alta Semper specifically invests in market-leading businesses in defensive sub-sectors within the consumer and healthcare verticals.

The investment into HealthPlus will enable the Company to capture the pent-up demand for high-quality yet affordable healthcare and professional beauty supplies by developing regional distribution centres in commercial hubs across Nigeria, rapidly expanding the Company’s footprint across Nigeria as well as developing a wholesale channel and investing in private label and e-commerce.

Commenting on the investment, Bukky George, Founder & CEO of HealthPlus said, “We believe Alta Semper is the right partner for our next stage of growth. Alta Semper’s focus on the healthcare sector, as well as its ability to invest patient and flexible capital, will allow us to grow strategically across Nigeria and further our mission to provide high quality and affordable healthcare products and services to a market that is large and growing. Our vision is to be Africa’s #1 for pharmacy, wellness and beauty. We believe we have found a partner who can help us achieve this goal over the coming years.”

Commenting on the investment, Afsane Jetha, Managing Partner & CEO of Alta Semper said,
“We are very excited about our partnership with HealthPlus, a remarkable example of a homegrown company that has become one of the largest specialty retailers in West Africa. We believe HealthPlus is well-positioned to take advantage of the grossly under-penetrated Nigerian pharmacy retail market and meet the growing demands of Nigerian consumers, as well as to expand regionally into neighbouring countries. We believe that this is an opportune time to enter the Nigerian retail market and invest in a market-leading player such as HealthPlus, which presents a unique risk-adjusted entry strategy, given its existing size and geographic scope. We are looking forward to working closely with Bukky George and her team to further unlock the Company’s growth potential.”

What next for HealthPlus?

We can only wait for what will happen to this leading Nigerian pharmaceutical company. One undisputed fact is that there is a crisis at HealthPlus between the investor and the founder (s). We would follow this story to the later and keep you updated.