India Cipla to Take Over South Africa Cipla
Two Ciplas from two continents would merge into one. Indian pharmaceutical company Cipla Ltd increased its offer by 17% to fully acquire South African drug company Cipla Medpro South Africa Ltd. This allays the issues on the Indian drugmaker's withdrawal of its previous offer to purchase.
Cipla is the fifth largest drugmaker by sales in India would shell out US$512 million or SArand10 per share in order to purchase Cipla Medpro and remove the South African drugmaker from the public bourse. The first offer was made in November 2012 when it offered to purchase 51% of Cipla Medpro South Africa. After the offer was made, Cipla South Africa landed a SArand1.4 billion government drug contract, revaluing the share price of the contract.
Cipla Chairman Y.K. Hemied said that the November offer was put on hold but gave no reason for such decision. Cipla India is the biggest supplier of pharmaceuticals to Cipla Medpro.