Cipla Medpro to consider Adcock’s takeover bid

Cipla Medpro to consider Adcock’s takeover bid
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First Published: Tue, May 12 2009. 11 35 PM IST
Updated: Tue, May 12 2009. 11 35 PM IST
Mumbai: South African drug marketing firm Cipla Medpro SA Ltd is considering a $256 million takeover offer by Adcock Ingram Holdings Ltd despite the rejection of the bid by Mumbai-based Cipla Ltd, its strategic partner and key supplier.
Cipla Medpro has appointed a three-member independent sub-committee to study the offer.
“Cipla Medpro SA is currently considering the proposed offer by Adcock Ingram under the auspices of the independent sub-committee of the board and will make an announcement on the offer at the conclusion of this process,” said Sugitha Naidoo, a spokesperson for Cipla Medpro, in an email response on Tuesday to queries from Mint.
Amar Lulla, joint managing director and chief executive officer of Cipla, wrote to Adcock that its “board will not support Adcock’s bid to purchase Cipla Medpro now or at any time in the future.”
Though the Indian firm doesn’t have any equity stake in Cipla Medpro, it had objected to Adcock’s bid because of a takeover’s likely impact on the supply deal.
Initially, Adcock had said that its takeover proposal would be based on the condition that the supply contract with Cipla would continue.
“Our position remains unchanged, and we have all the options available to exit from the joint venture in the event of a change of management in Cipla Medpro,” Lulla told Mint in a
telephone interview on Tuesday.
ch.unni@livemint.com
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First Published: Tue, May 12 2009. 11 35 PM IST