Cipla Ltd. to buy Cipla Medpro South Africa for $512 millionStaff writer ▼ | March 1, 2013
The offer will be implemented via a scheme of arrangement and is subject to regulatory and other approvals including approval by Medpro shareholders. Directors of Medpro have unanimously resolved to support and facilitate Cipla’s offer and recommended to Medpro shareholders that they vote in favour of the offer. The proposed acquisition will be made either directly by Cipla or by a subsidiary nominated by it and will be funded largely through internal accruals and will consider other alternatives, if required.
"South Africa is an attractive emerging market with strong projected growth for generic drugs of approximately 14% per year for the next several years. This investmentis aligned with Cipla’sstrategy to ascend the value-chain by managing a front-end salesforce in a market outside India", said Cipla CEO Subhanu Saxena.
"This investment is aimed at further strengthening our commitment to South Africa and the broader African continent. Patients and the healthcare landscape will benefit both from Cipla’s 77+ years of experience across products, technologies, dosage forms and Cipla’s ethos of striving hard to provide greater access to medicine," Cipla chairman Yusuf Hamied. ■