Cipla plans $512 mln takeover of South Africa's Cipla Medpro

MUMBAI Thu Feb 28, 2013 10:24am IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Cipla Ltd (CIPL.NS) on Thursday sweetened its offer by 17 percent to take over South Africa's third-largest drugmaker, Cipla Medpro South Africa Ltd CMPJ.J, ending the uncertainty of an earlier offer that had been put on hold by the Indian company.

Cipla, India's fifth-largest drugmaker by sales, said it would spend about $512 million, or 10 rand a share, to acquire Cipla Medpro and then delist the South African drugmaker.

The Indian company in November 2012 offered to buy 51 percent of Cipla Medpro at 8.55 rand a share. After Cipla's initial offer, the South African company won a 1.4 billion rand government drug contract, leading analysts to revalue the African firm higher.

"With a 100 percent buy-out plan, Cipla will have good operational synergies in the African market," said Siddhant Khandekar, an analyst at ICICI Direct in Mumbai. "However, it is difficult to predict if the payback would happen quickly."

Cipla Chairman Y. K. Hemied told Reuters earlier this month that the November acquisition had been on hold, but did not give any reason. Cipla is the biggest supplier of drugs to Cipla Medpro.

Shares in Cipla were up 0.8 percent at 367.40 rupees by 0426 GMT while the Mumbai market was up 0.53 percent.

(Reporting by Kaustubh Kulkarni; Editing by Jijo Jacob and Matt Driskill)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

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