One of the top stockholders in Cipla Medpro has said it would require Cipla Ltd to increase its US$500 million offer to purchase the third largest generics drug firm in South Africa. Cipla had offered 10 rand per share for 100% of the generics pharma from South Africa. The previous offer was at 8.55 for 51% shareholdings.
Cipla has been supplying generics pharmaceuticals to its South African namesake yet no shareholdings were ever part of the deal until now. The offer came before Cipla Medpro landed a 1.4 billion rand or US$154 million contract to supply HIV/AIDS drugs to local hospitals. This boosted Cipla Medpro share values 9%.
The shareholder is Sweet Sensation, who owns 18% of Cipla Medpro. Their spokesperson, Peter Moyo deplored the lack of a 'full buyout premium'. He said, "We are still firming up the numbers but I can tell you that our price will be higher than what they have put on the table."
Join the Conversation