With a view to expand its footprint in the South African market, Cipla will acquire a privately owned consumer health and generic medicine company Actor Pharma. The acquisition will take place at a cost of ZAR900 million or $48.6 million.
As per the company, the transaction was executed through Cipla’s wholly-owned subsidiary in South Africa, that signed a binding term-sheet with Actor Holdings to acquire 100 percent of the issued ordinary shares of Actor Pharma.
The company said this is a "strategic acquisition" that will "leverage cost synergies in South African market". With Actor Pharma’s focus on the consumer-driven market and pipeline of new launches, Cipla expects its over‐the‐counter revenue to get a boost.
"This is in line with our strategy of strengthening our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities and optimize the performance of our pipeline" said Umang Vohra, Global MD & CEO, Cipla Limited.
The acquisition is expected to be signed within 14 days and the transaction is likely to be completed within 4 months.
The transaction is expected to close in three-four months, subject to the negotiation and signing of the definitive transaction agreements (which are expected to be concluded imminently) as well as receiving regulatory approval from South Africa’s Competition Commission, Cipla said.
First Published: Sept 4, 2023 11:01 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM