On Air Now

Listen

Listen Live Now » 101.1 FM Green Bay, WI

Weather

Current Conditions(Green Bay,WI 54303)

More Weather »
71° Feels Like: 71°
Wind: E 6 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Tonight

Cloudy 65°

Tomorrow

Mostly Cloudy 79°

Sun Night

Mostly Cloudy 66°

India's Cipla plans $512 million takeover of South Africa's Cipla Medpro

* Raises per-share price to 10 rand from 8.55 rand

* Plans to delist Cipla Medpro when sale complete

MUMBAI (Reuters) - Indian drugmaker Cipla Ltd on Thursday sweetened its offer by 17 percent to take over South Africa's third-largest drugmaker, Cipla Medpro South Africa Ltd, 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 ($158 million) 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)

Comments