Cipla may acquire 25% stake in the manufacturing division of South Africa based Cipla-Medpro Pty Limited. Cipla doesnt have any stake in the company. The two have been partners for 18 years.

If the deal goes through, it would be Cipla's first ever overseas pure play pharma acquisition.

Cipla will invest in Cipla Medpro Manufacturing (Pty) Ltd (CMM), a subsidiary of Cipla Medpro South Africa Limited, which is setting up one of the largest contract manufacturing facilities in Africa at an investment of over Rs 145 Cr. Currently CMM is a loss making division of Cipla Medpro.

Transaction Reference: BS

Cipla-Medpro produces chronic medicines and over the counter products to the public and private sectors.

In April'09, South Africa's second largest pharma company - Adcock Ingram made a hostile bid for Cipla Medpro by offering about $233 Mn. The bid was later withdrawn follwing Cipla's threats to sever its contacts and opposition from Sweet Sensation - Cipla Medpro's largest minority shareholder with a 18.5% stake.

This acquisition could help Cipla to take a proper control over its African operations as well as prevent any future takeover bids.

Africa is a key market for Cipla as 35% of its total is exported to Africa and arond 15% of its total export revenues are through Cipla Medpro.

Earlier in Aug, Cipla acquired Mumbai based Meditab Specialities Private Limited for Rs 133 Cr.

It has also acquired a 25% stake in a Hong Kong based biotech company with manufacturing units in Shanghai.

Previous Article

Cethar Vessels Plans To Raise Rs 400 Cr PE

Next Article

LIC To Invest R125 Cr in Dena Bank For 5% Stake

All Comments

Readers' Recommendations

1

August 24, 2011 08:38 AM

If you want to buy real estate, you will have to receive the mortgage loans. Moreover, my father usually utilizes a credit loan, which occurs to be the most useful. - Posted by Jolene Carpenter Recommended by 0 Readers