India's Cipla ups bid for Cipla Medpro now seeking 100% control for around $512 million

Indian drugmaker Cipla (BSE: 500087) has made an offer to the shareholders of Cipla Medpro South Africa Ltd. (“Medpro”) to acquire 100% of the ordinary share capital of Cipla Medpro South Africa (CMP: JO), for 10.0 rand per share, or about 4.5 billion rand ($512 million) having last year tried to buy a 51% stake in the company for 8.55 rand a share, or about $200 million (The Pharma Letter November 22, 2012).

Cipla says the board of directors of Medpro have unanimously resolved to support and facilitate Cipla’s offer and recommended to Medpro shareholders that they vote in favor of all resolutions required to implement the scheme.

Speaking of the offer, Cipla chief executive Subhanu Saxena said: “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 investment is aligned with Cipla’s strategy to ascend the value chain by managing a front'end sales force in a market outside India. Cipla and Medpro have enjoyed a long'standing symbiotic relationship spanning two decades. The deal enables Cipla to strengthen Medpro’s position in the South African pharmaceutical market, support the optimization of Medpro’s manufacturing capability and support Medpro's expansion into collaboratively identified African markets.”