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Time of India
24-07-2025
- Business
- Time of India
Natco Pharma shares dip over 2% after Rs 2,000-crore stake buy in South Africa's Adcock Ingram
Natco Pharma shares slipped 2.5% to Rs 1,009 apiece on the BSE in Thursday's trade after the company announced its plan to acquire a 35.75% stake in South Africa-based Adcock Ingram Holdings (AIHL) for $226 million (approximately Rs 2,000 crore). The proposed all-cash deal involves acquiring nearly 36% of AIHL from minority shareholders. Natco said the strategic investment aims to expand its geographical footprint in South Africa , marking a significant step toward diversifying beyond its key markets. Founded in 1890, Adcock Ingram operates across four segments—prescription, consumer health, over-the-counter (OTC), and hospital products—with a wide portfolio of branded and generic formulations, critical-care products, and consumer healthcare offerings. The acquisition is expected to be completed in 2025. Following the deal, Adcock will continue as a private South African entity, with Bidvest retaining 64.25% and Natco holding 35.75%, including its existing 0.80% stake. Post-transaction, Natco will consolidate its share of AIHL's net profits, which stood at $45 million for the year ended June 2024, on total revenue of $536 million. 'Adcock Ingram is a respected pharmaceutical company with well-recognised brands and a leading position in South Africa. This acquisition gives Natco an established entry into the Southern African market, opens new revenue streams, and strengthens our footprint in a key emerging region,' said Rajeev Nannapaneni, CEO and Vice-Chairman of Natco Pharma. Live Events In addition to the acquisition, Natco's board approved the incorporation of a wholly owned subsidiary in South Africa with an investment of up to Rs 2,100 crore this year. The move is part of the company's strategy to enter new geographies for sustained growth and improved profitability. The board also approved a proposal to liquidate its wholly owned subsidiary Time Cap Overseas (TCOL) and directly hold the investment in step-down subsidiary NatcoFarma do Brasil. Brokerage View Brokerage firm Nuvama raised its target price on Natco Pharma to Rs 1,110 from Rs 990, while maintaining a 'Hold' rating. It believes the Adcock deal strengthens Natco's presence in emerging markets, supports diversification beyond the US, and improves R&D leverage. The deal is expected to be 7–9% EPS accretive, driven by prescription revenue synergies. Also read: The great Adani bet: Mutual funds & LIC are buying what GQG, FIIs are selling Nuvama also noted that with Rs 15 billion in post-deal cash, Natco may pursue further M&A opportunities to fuel long-term growth. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The Hindu
23-07-2025
- Business
- The Hindu
Natco Pharma to acquire stake in South African firm Adcock Ingram for ₹2,000 crore
Natco Pharma has made an offer to acquire nearly 36% stake in South African pharmaceutical company Adcock Ingram Holdings (AIHL) for $226 million (around ₹2,000 crore). The proposal to acquire the stake from minority shareholders in an all cash deal is a strategic investment aimed at to expanding geographic footprint in South Africa, Natco said on Wednesday. Founded in 1890, AIHL has a diverse product portfolio, from generic and branded formulations, critical-care hospital products to consumer and home-care products. It operates across four segments -prescription, consumer, OTC and hospitals. The acquisition is expected to be completed by 2025. Post-acquisition, AIHL will continue to operate as a private South African business with Bidvest holding 64.25% and Natco 35.75%, including a prior held 0.80% stake, in the company. Post-transaction, Natco will consolidate 35.75% of AIHL net profits in its financial results. AIHL clocked revenue of $536 million in the financial year June 2024 and profit after tax of $45 million. 'Adcock Ingram is a respectable pharmaceutical company with well-recognised brands and products and maintains a leading position in the South African pharmaceutical market. The proposed transaction will provide Natco Pharma with a well-established entry into the Southern African market. It will also allow us to tap into new revenue streams and expand our footprint in one of the largest and growing emerging markets, while providing a gateway to the African continent,' CEO and Vice-Chairman Rajeev Nannapaneni said. Besides the acquisition, Natco Pharma Board also approved a proposal to incorporate a wholly owned subsidiary in South Africa with an investment of up to Rs.2,100 crore by this year to enter new geographies for growth and increased profitability. It also approved a proposal to liquidate wholly owned subsidiary Time Cap Overseas (TCOL), and directly hold the investment in step down subsidiary NatcoFarma do Brasil. Natco shares closed 2.01% higher at ₹1,034.75 apiece on the BSE.
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Business Standard
23-07-2025
- Business
- Business Standard
Natco Pharma to acquire 35.75% stake in Adcock Ingram for ₹2,000 cr
The proposed Rs 2,000 crore deal will give Natco Pharma a strategic foothold in South Africa, with transaction completion expected within four months subject to approvals Sanket Koul New Delhi In a bid to enter the African market, Natco Pharma on Wednesday announced that it has submitted a firm intention for a ZAR 4 billion (Rs 2,000 crore) cash offer to acquire a minority stake in South Africa-based drugmaker Adcock Ingram Holdings (AIHL). If approved, the Hyderabad-based company will hold a 35.75 per cent stake in Adcock Ingram by offering ZAR 75.00 ($4.271) per share to minority stakeholders. The deal gives Natco a gateway into South Africa, with AIHL holding a 10 per cent share of the private pharmaceutical market in the country. It is also the largest supplier of hospital and critical care products in South Africa. This transaction would consolidate Natco's existing 0.80 per cent stake, making it the second-largest shareholder in AIHL, behind the Bidvest Group, which holds the remaining 64.25 per cent. 'Post-transaction, Natco will consolidate 35.75 per cent of AIHL's net profits in Natco's financial results in accordance with its shareholding,' the company said in a regulatory filing. If the deal proceeds, Adcock Ingram will be delisted from the Johannesburg Stock Exchange (JSE) and will continue to operate as a private South African business. Rajeev Nannapaneni, chief executive officer and vice-chairman of Natco Pharma, said the proposed acquisition would help the company tap into new revenue streams and expand its presence in one of the largest and fastest-growing emerging markets. In return, AIHL is expected to leverage Natco's research and development capabilities, regulatory expertise, and global marketing network 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, chief executive officer, AIHL. Valued at an estimated ZAR 11 billion ($632 million), AIHL generated revenues of ZAR 9.6 billion ($536 million) for the financial year ending June 2024. Founded in 1890, the company operates across four segments—prescription, consumer, over-the-counter (OTC), and hospitals. It has a diverse product portfolio ranging from generic and branded formulations to critical-care hospital products, as well as consumer and home-care products. The announcement was made after market hours. On Wednesday, Natco Pharma's shares rose by 2.01 per cent, ending the day's trade at Rs 1,034.75 apiece on the Bombay Stock Exchange (BSE).
