Natco Pharma to Acquire Adcock Ingram Stake for INR 2,000 Cr

This transaction would consolidate Natco’s previous 0.80 per cent stake, making it the second-largest shareholder in AIHL with 35.75 per cent.

NATCO Pharma, a Hyderabad-based pharmaceutical company, has submitted a firm intention offer to a South African drugmaker Adcock Ingram Holdings to buy out 35.75 per cent equity stakes for a cash offer of around INR 2000 Cr.

The Indian drugmaker currently owns 0.80 per cent stake in the company and has made a cash offer to acquire the company minority shareholder stakes at a face value of $4.27 per share.

This transaction would consolidate Natco’s previous 0.80 per cent stake, making it the second-largest shareholder in AIHL with 35.75 per cent.

In a stock exchange filing the company disclosed that it has offered to acquire over 5.1 Cr shares, comprising five crore ordinary shares from the public and 12 lakh treasury shares/fresh issuance from Adcock Ingram.

“Post-transaction, Natco will consolidate 35.75 per cent of AIHL’s net profit in its financial results in accordance with its shareholding,” the company said in a regulatory filing.

Rajeev Nannapaneni, chief executive officer (CEO) and vice chairman of Natco Pharma, said that the proposed transaction will also allow the company to tap into new revenue streams and expand its footprint in one of the largest and growing emerging markets.

In return, AIHL will be aiming to leverage Natco’s research and development (R&D) strengths, regulatory expertise, and global marketing reach to support local leadership and expansion into new markets.

“AIHL will benefit from a partnership with a research-focused, innovative and vertically integrated pharmaceutical company, and over time, South Africans will be beneficiaries of wider access to affordable medicines,” said Andrew Hall, CEO at AIHL.

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