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| Cipla may decide in Oct on stake buy in SA co |
| Press Trust of India / New Delhi Sep 03, 2010, 14:35 IST |
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Drug major Cipla today said it could take a decision to buy stake of up to 25 per cent in a unit of South Africa-based, Cipla Medpro in its next board meeting in October.
Cipla Medpro is a partner of the Indian firm and is the third biggest drugmaker in South Africa but Cipla does not hold any stake in the company.
The Indian firm exports around 35 per cent of its production, mainly HIV-AIDS drugs, to the African continent and around 15 per cent of its export revenues are through Cipla Medpro.
"Our board will take a decision (on stake acquisition in Cipla Medpro unit) in the next board meeting, which will happen in a month and half," Cipla Chief Financial Officer S Radhakrishnan said.
Cipla is looking to acquire around 25 per cent in the manufacturing arm of Cipla Medpro.
The deal size could not be ascertained but Radhakrishnan said: "The investment won't be significant as its just a unit of Cipla Medpro."
The Mumbai-based pharma major, which is one of the largest pharmaceutical companies in the country, said the SA company's board has already approved the stake sale.
"There (Cipla Medpro) board has already given a go ahead," he said.
Cipla's board recently approved to acquire domestic pharma company Meditab Specialties for Rs 133.35 crore. The board also announced a special dividend of 80 paise per share to mark its 75th anniversary.
Shares of Cipla were trading at Rs 308 on the Bombay Stock Exchange in the late afternoon trade, up 0.90 per cent from its previous close.
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