Shareholders of Cipla Medpro South Africa have finally given nod to Mumbai-based Cipla’s offer to acquire 100% stake in the foreign company. Earlier this year, Cipla offered close to $500 million to buy out South African affiliate Cipla Medpro by sweetening its bid by 17% after earlier talks stalled over price. In November Cipla offered $215 million for 51% of the company. So, the company would offer 10 South African rand per share, up from its initial bid of 8.55 rand and valuing the company at around 4.5 billion rand ($508 million).
Cipla supplies the bulk of the South African company's drugs through a long-standing agreement; however it has never owned a stake in the Cape Town-based company. This development will give Cipla a direct connect to consumers in South Africa. It also helps the company to integrate its marketing or front-end arm in South Africa with its manufacturing, regulatory and research units.
