India-listed Natco Pharma has been given the green light to buy a significant stake in Adcock Ingram, with the South African company’s shareholders voting in favour of a deal, reports BusinessTech.
Four months ago Natco Pharma, which specialises in R&D, manufacturing, marketing finished dosage formulations and active pharmaceutical ingredients, had offered R75 per share to buy out JSE-listed Adcock Ingram’s minority shareholders.
Adcock operates, manufactures, markets and distributes various healthcare products, including Panado, Allergex and Myprodol.
Anchor Capital Equity Analyst Sean Culverwell told BusinessTech the offer would end Adcock’s long spell in “minority purgatory”.
“Since Bidvest took control of the company in 2019 (via a 64.25% stake), the free float has dwindled and liquidity has dried up, so a delisting always felt inevitable,” he said
“If the offer is accepted, Natco will hold a 35.75% stake in Adcock Ingram, and it will be delisted from the JSE.”
He added that Bidvest’s 64% stake is excluded from the deal, and underscores “Bidvest’s confidence in Adcock’s defensive earnings and domestic diversification, which still suit Bidvest’s local portfolio”.
The deal has received the go-ahead from shareholders, with 98.66% of scheme members voting in favour of it.
The final salient dates for implementing the Scheme and delisting Adcock Ingram from the JSE will be announced in due course.
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