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:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Canonisation

Canonisation

Pope declares sainthood of two Indians, four Italians.  Full Article 

Stake Sale Strike

Stake Sale Strike

Coal India trade unions call off strike in victory for Modi.  Full Article 

Markets Weekahead

Markets Weekahead

Ride the bull with a finger on the ejector button.  Full Article 

Arms Purchase

Arms Purchase

India approves $2.6 bln mounted gun purchase - official.  Full Article 

Interview with Bulgari CEO

Interview: Bulgari CEO

Bulgari CEO: we shouldn’t have left India so we’re back  Full Article 

Formula One

Formula One

Hamilton takes second F1 title in style.  Full Article 

Available For Remake

Available For Remake

Bollywood finally wants to pay the price for remakes  Full Article 

Davis Cup

Davis Cup

Vintage Federer seals first Davis Cup for Switzerland.  Full Article 

Movie Review

Movie Review

"Happy Ending" is old wine in an older bottle  Full Article 

Reuters India Mobile

Reuters India Mobile

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