Cipla sweetens offer for Cipla Medpro to $512 m

Written by Agencies | New Delhi | Updated: Mar 1 2013, 09:52am hrs
Cipla on Thursday sweetened its offer by 17% to take over South Africas third-largest drugmaker, Cipla Medpro, ending the uncertainty of an earlier offer that had been put on hold by the Indian company.

Cipla, Indias fifth-largest drugmaker by sales, said it would spend about $512 million, or 10 rand a share, to buy Cipla Medpro and then delist the South African drugmaker.

Cipla in November 2012 offered to buy 51% of Cipla Medpro at 8.55 rand a share. After Ciplas initial offer, the South African firm won a 1.4-billion rand government drug contract, leading analysts to revalue the African firm higher.

The Medpro board has recommended to its shareholders to vote in favour of the latest offer.