Cipla Suspends Effort To Buy Majority Of South Africa's Cipla Medpro
This article was originally published in PharmAsia News
Executive Summary
Cipla has suspended its effort to buy a majority stake in the South Africa drug maker Cipla Medpro that shares its name, citing issues concerning its valuation.
Cipla has suspended its effort to buy a majority stake in the South Africa drug maker Cipla Medpro that shares its name, citing issues concerning its valuation. The India drug maker had planned to pay $220 million for a 51% stake in Cipla Medpro to acquire a major presence in the South Africa pharmaceutical market valued at $3 billion. Y.K. Hamied, Cipla chairman, said the acquisition was on hold because Medpro had not accepted the bid. Medpro buys all of its bulk drugs from Cipla, but since the India-based drug maker made the bid, Medpro won a valuable government contract, increasing its value in the eyes of the South Africa drug maker. (Click here for more
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"Cipla Puts Medpro Buyout On Hold Over Valuation Issues" - Economic Times (India) (2/11/2013)