Cipla sweetens offer for Cipla Medpro to $512 m

Cipla on Thursday sweetened its offer by 17% to take over South Africa?s third-largest drugmaker, Cipla Medpro, ending the uncertainty of an earlier offer that had been put on hold by the Indian company.

Written by Agencies

March 1, 2013 04:22 IST

Cipla, India?s 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 Cipla?s 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.

This article was first uploaded on March one, twenty thirteen, at twenty-two minutes past four in the morning.