Cipla's Medpro takeover gets South African regulator's approval

Drug maker Cipla has said it expects completion of the $512 million takeover of Cipla Medpro by mid-July.

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

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

"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 Johannesburg Stock Exchange (JSE) Ltd with effect from July 16, 2013," the statement said.

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 the drug major further strengthen its position in the African continent.

Shares of Cipla closed marginally higher at Rs 391.45 on the Bombay Stock Exchange on Friday.

With inputs from PTI