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

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

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