Natco Pharma: Will buy 36% stake in Adcock Holdings

News Topical, Digital Desk : Natco Pharma, a pharma company listed on BSE 500, announced on Wednesday that it is going to buy a stake in South African pharmaceutical company Adcock Holdings. After the market closed, the company informed the stock market about this. In Wednesday's trading, the stock closed at 1034.5 with a gain of 2 percent.

What information has the company given?

On Wednesday, the company informed that it will buy 35.75% stake in South African company Adcock Ingram Holdings Ltd. The company has made an offer to buy Adcock Ingram at the rate of ZAR 75.00 (about $4.27) per share. According to the company, the total investment amount is Rs 2,000 crore and the company will acquire 5.164 crore shares. If this offer is accepted, Natco Pharma will have a 35.75% stake in Adcock Ingram, which is valued at around Rs 400 crore. The total estimated value of Adcock Ingram is Rs 1,100 crore. The deal is expected to be completed in the next four months, depending on the necessary approvals. This acquisition will give Natco a strong hold in the Southern African market. Natco Pharma will now strengthen Adcock Ingram's local leadership using its R&D capabilities, experience and global marketing network and expand into new markets. 

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