Adcock Ingram withdraws Cipla Medpro buy offer

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Posted: Tuesday, Jun 02, 2009 at 1952 hrs IST
Updated: Tuesday, Jun 02, 2009 at 1952 hrs IST

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Mumbai: South Africa-based healthcare group Adcock Ingram said on Tuesday that it is not going ahead with its proposal to acquire Cipla Medpro South Africa.

"While we are disappointed to withdraw from a transaction which had such a compelling commercial rationale, we have been placed in an untenable position," Adcock Ingram CEO Jonathan Louw said in a release in Mumbai.

"Given the lack of response from the Cipla Medpro board... the prospect of successfully completing a commercially viable transaction is no longer possible," he said.

In April, Adcock Ingram had made an offer to Cipla Mepro's board to acquire the entire share capital of the company for USD 228 million.

On April 17, Cipla India said it was not supportive of Adcock's proposed offer.

Though the Indian firm does not have any equity stake in Cipla Medpro, it had objected to Adcock's bid because of a takeover's likely impact on a supply deal.

Cipla Medpro, formerly Enaleni Pharmaceuticals, is a generic company listed in Johannesburg Stock Exchange. It has a long-term supply arrangement with Cipla India in relation to the pharma products developed in India.

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