Cipla offers to acquire controlling stake in Cipla Medpro South Africa for $220 million

Cipla Ltd, one of the world's largest generic pharmaceutical companies, has made an indicative offer to acquire a 51 per cent stake in Cipla Medpro South Africa Ltd, for around $220 million.

Formed in 2003 as Enaleni Pharmaceuticals through a management buy-out of Reckitt-Benckiser's Durban manufacturing plant, Johannesburg Stock Exchange-listed Cipla Medpro is South Africa's third-largest pharmaceutical company.

Cipla has offered to pay 8.55 ZAR per share, payable ex-final dividend for 2012 that has been capped at maximum of 0.1 ZAR per share.

The Mumbai-based generic firm is in preliminary discussions with Cipla Medpro, and the offer is subject to various conditions, including due diligence, execution board, regulatory and other approvals.

Cipla Medpro is a distributor of Mumbai-based Cipla's products in South Africa ans some neighbouring countries.

The Cape Town-based company provides an extensive range of over-the-counter (OTC) products and chronic medicines spanning a broad range of categories,such as cardio-respiratory, diabetes, oncology, neuro-psychiatry and HIV/Aids.