Cipla to buy control of S.Africa's Cipla Medpro

JOHANNESBURG Wed Nov 21, 2012 3:18pm IST

Related Topics

Stocks

   

JOHANNESBURG (Reuters) - Indian drugs maker Cipla Limited (CIPL.NS) has offered to buy a about a 51 percent stake in South Africa's Cipla Medpro CMPJ.J, to strengthen its position in the fast-growing African drugs market.

The Indian firm has offered 8.55 rand per share, Cipla Medpro said in a statement on Wednesday. The price represents an 11 percent premium on Cipla Medpro's closing share price on Tuesday.

Shares of Cipla Medpro, South Africa's No.3 drug maker, surged 8.58 percent to 8.35 rand on the news.

Cipla supplies the bulk of Cipla Medpro's drugs through a longstanding supply agreement. However, the two have never had a capital alliance.

The agreement was spearheaded by Cipla Medpro's founder and former chief executive, Jerome Smith, who quit last month following charges of "gross misconduct" for approving pay rises and bonsues for himself with board approval.

There had been some speculation in the market that Smith's departure could impact Cipla Medpro's relationship with the Indian company. (Reporting by Tiisetso Motsoeneng; editing by David Dolan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Pharma

REUTERS SHOWCASE

Modi's U.S. Trip

Modi's U.S. Trip

PM Modi to get rock star reception in New York.  Full Article 

Northeast Floods

Northeast Floods

Landslides and floods kill 22 in northeast India.  Full Article 

Food Subsidy

Food Subsidy

Ram Vilas Paswan says no plans to raise food handouts.  Full Article 

New Plants

New Plants

Canadian auto parts maker Magna to open two new plants in Gujarat.  Full Article 

Importing Iron Ore

Importing Iron Ore

JSW Steel to import 10 mln T of iron ore due to local shortage.  Full Article 

Breaking Up

Breaking Up

Philips to split off lighting business, form separate company.  Full Article 

End of Monsoon

End of Monsoon

Monsoon starts withdrawing from northwest region.  Full Article 

Border Row

Border Row

Chinese and Indian troops in Himalayan standoff.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage