Natco Pharma Offers to Acquire Minority Stake in South Africa’s Adcock Ingram for ZAR 4 Billion
Hyderabad-based Natco Pharma Ltd. has announced a cash offer to acquire the 35.75% minority stake in Adcock Ingram Holdings Ltd., a prominent South African pharmaceutical company. The proposed transaction, valued at ZAR 4 billion (approximately ₹2,000 crore), is aimed at strengthening Natco's presence in South Africa and positioning it for expansion across the African continent.
The offer is priced at ZAR 75.00 (approx. $4.27) per share, and includes Natco’s existing 0.80% stake in Adcock Ingram. Once completed, Natco will become the second-largest shareholder in the Johannesburg-listed company, following the Bidvest Group, which will retain a 64.25% holding.
“This transaction offers Natco a robust platform to enter the Southern African market,” said Rajeev Nannapaneni, CEO and Vice Chairman of Natco Pharma. “It provides an opportunity to diversify revenue streams and serves as a strategic gateway into broader African markets.”
The acquisition will be fully funded through internal accruals, according to the company. The move is expected to unlock significant operational synergies. Adcock Ingram will benefit from access to Natco’s strong R&D pipeline, intellectual property, and experience in regulated markets, while Natco will gain from Adcock’s established market presence.
Adcock Ingram, established in 1890, is a well-respected pharmaceutical player in South Africa, commanding a 10% share in the private market and recognized as the largest supplier of hospital and critical care products in the country. The company is valued at approximately R11 billion ($632 million) and reported revenues of ZAR 9.6 billion ($536 million) for the fiscal year ending June 2024.
Following the completion of the deal, Adcock Ingram will be delisted from the Johannesburg Stock Exchange (JSE) and will operate as a privately held entity. The transaction is expected to enhance its market share and cost-efficiency by leveraging Natco’s global capabilities.
“This offer is a strong endorsement of Adcock Ingram’s people, brands, and business strategy,” said Andrew Hall, CEO of Adcock Ingram.
Both companies’ boards have approved the transaction. However, it remains subject to regulatory clearances, including approvals from the Reserve Bank of India and South Africa’s Takeover Regulation Panel. The acquisition is anticipated to close within four months, barring any delays in the approval process.
In parallel, Natco’s board has also approved the creation of a wholly-owned subsidiary in South Africa, named NATCO Pharma South Africa Proprietary Limited, with an investment of up to ₹2,100 crore. Additionally, the company will proceed with the liquidation of its existing subsidiary, Time Cap Overseas Limited.