Cipla Medpro deal gets shareholders nod

Indian pharma major Cipla's $488-million offer to take over the South African company Cipla Medpro was approved by shareholders.

Cipla has offered 10 Rand per each Cipla Medpro share.

Earlier, Cipla Medpro's top shareholder had said the price undervalued the Cape Town-based company.

Black empowerment group Sweet Sensations, the top shareholder in Cipla Medpro with an 18% stake, said in March it would ask the Indian company to raise its offer.

A total of 99.7% of shareholders voted in favour of the deal, Cipla Medpro said in a statement. Cipla Medpro would be delisted from the Johannesburg Stock Exchange on 3 September.

In November 2012, Cipla had offered to buy 51% of Cipla Medpro at 8.55 rand a share. After Cipla's initial offer, the South African company won a 1.4 billion rand ($158 million) government drug contract, making the valuation higher. In February, Cipla had sweetened its offer at 10 rand per share.

Cipla Medpro, the third largest pharmaceutical firm in SA, is a leading provider of chronic medicines in cardiovascular, antiretroviral (ARV), respiratory and neuropsychiatry categories.