Mumbai-based Cipla Ltd has completed acquisition of Cipla Medpro South Africa Ltd, its distribution partner in South Africa, thereby sealing one of the largest overseas acquisitions in the pharma space, as per a company disclosure on Tuesday. Early this year, Cipla had revised its previous offer to buy the South African firm with a deal pegged at around $512 million.
With the closure of the deal, Cipla Medpro ceases to be listed on the Johannesburg Stock Exchange.
YK Hamied-promoted Cipla had earlier made an offer to acquire a 51 per cent stake in Cipla Medpro in late 2012 at a rate of ZAR 8.55 (South African rand) but the deal reportedly faced roadblocks over valuation differences. Cipla had received approval from Takeover Regulation Panel of South Africa on June 27, 2013.
In the revised offer, the company had offered to the shareholders of Cipla Medpro to acquire 100 per cent in the company at ZAR 10 per share.
Cipla Medpro offers a broad range of medicines and products, targeting a number of critical care areas such as cardiovascular and respiratory, diabetes, oncology, psychiatry, anti-malarials and HIV/AIDS.
Cipla Medpro, which is South Africa’s third-largest pharma company, has two major divisions. The first one, Durban-based Cipla Medpro Manufacturing manufactures select lines of group’s products and offers contract manufacturing solutions to local and multinational companies. The second one, Cape Town-based Cipla Medpro is into an extensive range of chronic care medicines and OTC products.
This is Cipla Ltd’s first acquisition in three years. In 2010, the company acquired stake in Meditab Specialities Pvt Ltd, Mab Pharm and a drug formulation facility in Sikkim.
Cipla scrip closed at Rs 402.15 a share, down 1.4 per cent on the BSE in a weak Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)