Natco Pharma Issues Statement on Adcock Ingram Buy

Natco Pharma Limited, a wholly owned subsidiary in South Africa, conjointly with Adcock Ingram Holdings Limited, has circulated a joint circular to the Adcock Ingram’s shareholders. In a general meeting call, make a request authorization for the projected Scheme of Arrangement.

The scheme is about Natco Pharma’s cash offer to buy the entire outstanding common shares of Adcock Ingram, except those already held by Natco and the Bidvest Group Limited. As a result, only minority shareholders have the right to vote on the proposal, whereas Natco and Bidvest are not taking part in the voting.

Natco Pharma made a formal offer indicating that it was willing to acquire the shares held by the minority at ZAR 75 per share. The deal comes at a purchase price of about ZAR 4 billion (US$ 228 million), if the current rates of exchange are applied.

In the event the decision is favorable, Natco Pharma’s percentage of the shares will go up to 35.75%, whereas Bidvest will keep the remainder. Adcock Ingram will be unlisted from the Johannesburg Stock Exchange (JSE) and continue as a privately-owned company by the two, Bidvest and Natco Pharma, after the transaction has been completed.

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The partners intend, as a private company, to strengthen their South African presence in the country which is already established by Adcock Ingram and, therefore, they want to open up new revenue channels and consolidate their position as the largest pharmaceutical market in Africa.