Natco Pharma plans to acquire South Africa-based Adcock Ingram Holdings, reported CNBC-Awaaz on July 23 citing sources.
Adcock Ingram offers generics and OTC medicines in Africa. CNBC-Awaaz reported that Natco may buy majority stake in Adcock Holdings.
On July 22, Adcock told Johannesburg Stock Exchange about a "potential transaction".
"Shareholders of Adcock Ingram are advised that the Company has entered into discussions regarding a potential transaction, which if successfully concluded, may have a material effect on the share price. At this time there is no certainty that these discussions will result in a transaction.
"Shareholders are accordingly advised to exercise caution when dealing in Adcock Ingram securities until a
further announcement is made," said the company in a stock exchange filing.
"We are looking at acquisitions. We are looking at a lot of active acquisitions. I think I'm positive that we'll be able to close something in this financial year, that's the idea," Rajeev Nannapaneni, CEO, Natco Pharma had recently said.
On July 22, Adcock Ingram shares were trading nearly 10% higher. The stock trades at PE of 10 with market cap of nearly Rs 4,500 crore. It has three plants in South Africa, two plants in India under joint venture.
Meanwhile, at 12:45 pm on July 23, Natco Pharma shares were trading marginally lower at Rs 1,013.75 apiece.
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