New Delhi: Drug major Cipla on Tuesday said it has completed the buyout process of South African pharma firm Cipla Medpro for an aggregate consideration of Rs 2,707 crore.
"The company has completed the acquisition of 100 per cent of the issued shares of Cipla Medpro South Africa Ltd for an aggregate consideration of ZAR 4,507 mn (Rs 2,707 crore), Cipla Ltd said in a statement.
The listing of the shares of Medpro on the Johannesburg Stock Exchange (JSE) has been terminated from the commencement of business on July, 16 2013, it added.
Commenting on the development Cipla Managing Director and Global CEO Subhanu Saxena said the investment is aligned with Cipla's strategy to ascend the value-chain by managing a front end sales force in a market outside India.
"The acquisition aims to further strengthen Cipla's commitment to South Africa and the broader African continent. The integrated business will compete more effectively in the changing local and global pharmaceutical environments and as such there will be an increasing focus on key African markets," Saxena added.
He said that for nearly two decades Cipla and Medpro enjoyed a longstanding symbiotic relationship and the acquisition will strengthen Medpro's position in the South African pharmaceutical market by leveraging Cipla's wide range of product portfolio and technological expertise.
"This will bring tangible benefits to consumers in South Africa, and increasingly the rest of Africa," Saxena added.
The Mumbai-based firm had received approval from the Takeover Regulation Panel of South Africa on June 27, 2013. In May, Cipla Medpro shareholders had approved the Indian company's takeover offer.
Cipla's board had given a go-ahead to completely acquire the South African firm in March this year. Earlier, in November 2012, Cipla had offered to acquire 51 per cent stake in Cipla Medpro at a rate of 8.55 South African rands per share.
Cipla supplies majority of Cipla Medpro's drugs through a long-standing agreement.
Cipla Medpro is the third largest South African pharmaceutical company founded in 1993 and is a leading provider of chronic medicines to the public and private sectors.
Shares of Cipla were trading today afternoon at Rs 402 per scrip, down 1.46 percent from its previous close.
First Published: Tuesday, July 16, 2013, 15:45