Cipla has announced that the company is in preliminary discussions and has made an indicative proposal in relation to the acquisition of an approximately 51 per cent equity stake in Cipla Medpro South Africa, a company incorporated in the Republic of South Africa and a leading provider of chronic medicines to the public and private sectors, with particular strength within the cardiovascular, antiretroviral, respiratory and neuropsychiatric categories.
Based on Cipla Medpro's current shares outstanding and spot ZAR/$ exchange rates, total consideration payable by the company would be approximately $220 million (exclusive of the anticipated dividend of up to ZAR 0.10 per share to be paid by Cipla Medpro to its shareholders for the 2012 financial year). The discussions are subject to various conditions, including finalization of due diligence, execution of definitive documentation, applicable board, regulatory and other approvals. At this stage, there is no certainty that these discussions will lead to a firm offer being made or a transaction being consummated.
Cipla Medpro is one of South Africa's fastest growing pharmaceutical companies and currently the third largest.