Cipla amends offer, offers $512 mn for whole of Cipla Medpro South Africa
28 Feb 2013
Cipla Ltd, one of the world's largest generic pharmaceutical companies, yesterday offer to buy the whole of Cipla Medpro South Africa Ltd for about $512 million, after having earlier bid only for a controlling stake in South Africa's third largest drugmaker.
In November 2012, Cipla Ltd offered to buy a 51-per cent stake in Cipla Medpro at 8.55 rands per share, or $220 million.
Early this month, YK Hamied, chairman of the Cipla Ltd, however, said his company has put on hold its offer for Cipla Medpro. He did not give any reasons.
Cipla Ltd, India's fifth largest drugmaker by sales, has now offered to buy the whole of Cipla Medpro for 10 rands a share.
Cipla CEO, Subhanu Saxena, said, ''South Africa is an attractive emerging market with strong projected growth for generic drugs of approximately 14 per cent per year for the next several years. The deal enables Cipla to strengthen Medpro's position in the South African pharmaceutical market, support the optimisation of Medpro's manufacturing capability and support Medpro's expansion into collaboratively identified African markets.''
''This investment is aimed at further strengthening our commitment to South Africa and the broader African continent. Patients and the healthcare landscape will benefit both from Cipla's experience of over 77years across products, technologies, dosage forms and the company's ethos of striving hard to provide greater access to medicine,'' said Hamied.
