Expect completion of Cipla Medpro takeover by mid July: Cipla

The company received approval from the Takeover Regulation Panel of South Africa on June 27, 2013

Drug maker Cipla today said that it expects completion of the $512 million takeover of Cipla Medpro by middle of July and subsequent delisting of the South African firm from Johannesburg Stock Exchange (JSE) following approval by the country's Takeover Regulation Panel.

The company had received approval from the Takeover Regulation Panel of South Africa on June 27, 2013 and that all conditions precedent to the scheme have now been fulfilled or waived, and accordingly, on June 27, 2013, the scheme has become unconditional, Cipla said in a filing to BSE.

"The operative date of the scheme is expected to be July 15, 2013 and the shares of Medpro are expected to be delisted from the JSE Ltd with effect from July 16, 2013," it said.

Last month, Cipla Medpro shareholders had approved the Indian company's takeover offer. Earlier this year, Cipla had offered to pay 10 rand per share to acquire 100% of Cipla Medpro for a consideration of around $512 million.

Cipla supplies majority of Cipla Medpro's drugs through a long-standing agreement but has never owned a stake in it.

The acquisition of South African firm would help Cipla further strengthen its position in the African continent.

Shares of Cipla were trading today afternoon at Rs 391.85 per scrip, up 1.06% from its previous close.