Cipla Medpro of South Africa shareholders voted for the approval of US$488 million takeover bid from Cipla Ltd of India. This approval provides the Indian pharmaceutical company an expanded presence in the biggest economy on the African continent.
There were initial concerns as to the 4.5 billion rand or US$488 million deal as it is the largest purchase by an Indian firm in a company located in South Africa. One of the top shareholders in Cipla Medpro criticized the deal as undervaluing the South African firm.
99.7% of the shareholders voted to approve the deal, according to a stateemnt issued by Cipla Medpro.
Cipla India supplies a majority of the drug requirements of Cipla Medpro through a partnership agreement but despite the similarity in name, the Indian firm had never owned a single share in the South African firm.
Because of the approval, share prices of Cipla Medpro rose 1.9% to SAran9.65 per share, just a tad below the SArand10 offer by Cipla Ltd.
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