Latest news with #NatcoPharma
Time of India
an hour ago
- Business
- Time of India
Natco Pharma to buy over 35% in South Africa's Adcock Ingram
Natco Pharma, based in Hyderabad, is set to acquire a 35.75% stake in Adcock Ingram, South Africa's second-largest drugmaker, for ₹2,000 crore. This all-cash deal provides Natco Pharma with a strong entry into high-growth African markets and expands its product offerings. The acquisition, expected to finalize in four months, aligns with Natco's strategy to grow in emerging markets. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Hyderabad-based Natco Pharma on Wednesday said it has agreed to buy a 35.75% stake in Adcock Ingram , South Africa's second-largest drugmaker, for '2,000 all-cash deal will give Natco Pharma a foothold in some high-growth African markets besides an opportunity to expand its product Nannapaneni, chief executive officer and vice chairman of Natco Pharma, told ET that the Adcock deal is aligned with the company's plan of expanding its presence in emerging markets . "Besides, this was within our valuation range," he said the company reserves the right of first refusal in case the shareholders of Adcock Ingram plan to divest additional equity stake. The Bidwest group holds 64.25% stake in the company."Adcock Ingram will be delisted from the JSE (Johannesburg Stock Exchange) if the transaction proceeds," Natco Pharma said in a statement, adding that the estimated transaction completion time is four months, assuming that there are no regulatory told investors over a call that the deal is a significant step as it would have taken Natco Pharma decades to build business in Africa on its Ingram has a presence across segments-prescription, OTC ( over-the-counter drugs ), consumer products and the hospitals the first half of FY25, Adcock Ingram recorded sales of $262 million. In FY24, its sales stood at $536 million and EBITDA at $78 million. It had a gross margin of 33.4% in EV/EBITDA for the Natco deal is 7.83, according to an investor presentation by Natco Pharma said it can potentially bring significant value through its research and development programmes, dossier approvals, intellectual property sharing, experience in regulated market operations, sourcing and global marketing for the new markets in Africa and regulated markets in the the investor call, Nannapaneni hinted at another deal under examination but refused to share any details. For FY25, Natco Pharma recorded sales of '4,784 crore and a profit after tax of '1,883 crore. The company had a cash reserve of '3,000 crore, of which '2,000 crore will be used for the Adcock deal.
Economic Times
an hour ago
- Business
- Economic Times
Natco Pharma to buy over 35% in South Africa's Adcock Ingram
Synopsis Natco Pharma, based in Hyderabad, is set to acquire a 35.75% stake in Adcock Ingram, South Africa's second-largest drugmaker, for ₹2,000 crore. This all-cash deal provides Natco Pharma with a strong entry into high-growth African markets and expands its product offerings. The acquisition, expected to finalize in four months, aligns with Natco's strategy to grow in emerging markets. Representative image. Mumbai: Hyderabad-based Natco Pharma on Wednesday said it has agreed to buy a 35.75% stake in Adcock Ingram, South Africa's second-largest drugmaker, for '2,000 crore. The all-cash deal will give Natco Pharma a foothold in some high-growth African markets besides an opportunity to expand its product portfolio. Rajeev Nannapaneni, chief executive officer and vice chairman of Natco Pharma, told ET that the Adcock deal is aligned with the company's plan of expanding its presence in emerging markets. "Besides, this was within our valuation range," he said the company reserves the right of first refusal in case the shareholders of Adcock Ingram plan to divest additional equity stake. The Bidwest group holds 64.25% stake in the company. "Adcock Ingram will be delisted from the JSE (Johannesburg Stock Exchange) if the transaction proceeds," Natco Pharma said in a statement, adding that the estimated transaction completion time is four months, assuming that there are no regulatory delays. Nannapaneni told investors over a call that the deal is a significant step as it would have taken Natco Pharma decades to build business in Africa on its own. Adcock Ingram has a presence across segments-prescription, OTC (over-the-counter drugs), consumer products and the hospitals business. For the first half of FY25, Adcock Ingram recorded sales of $262 million. In FY24, its sales stood at $536 million and EBITDA at $78 million. It had a gross margin of 33.4% in EV/EBITDA for the Natco deal is 7.83, according to an investor presentation by Natco Pharma said it can potentially bring significant value through its research and development programmes, dossier approvals, intellectual property sharing, experience in regulated market operations, sourcing and global marketing for the new markets in Africa and regulated markets in the the investor call, Nannapaneni hinted at another deal under examination but refused to share any details. For FY25, Natco Pharma recorded sales of '4,784 crore and a profit after tax of '1,883 crore. The company had a cash reserve of '3,000 crore, of which '2,000 crore will be used for the Adcock deal.
The Hindu
2 hours ago
- 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 $45 million. 'Adcock Ingram is a respectable pharmaceutical company with well-recognised brands and products and maintains a leading position in the South African pharmaceutical market. The proposed transaction will provide Natco Pharma with a well-established entry into the Southern African market. It will also allow us to tap into new revenue streams and expand our footprint in one of the largest and growing emerging markets, while providing a gateway to the African continent,' CEO and Vice-Chairman Rajeev Nannapaneni said. Besides the acquisition, Natco Pharma Board also approved a proposal to incorporate a wholly owned subsidiary in South Africa with an investment of up to Rs.2,100 crore by this year to enter new geographies for growth and increased profitability. It also approved a proposal to liquidate wholly owned subsidiary Time Cap Overseas (TCOL), and directly hold the investment in step down subsidiary NatcoFarma do Brasil. Natco shares closed 2.01% higher at ₹1,034.75 apiece on the BSE.
Mint
4 hours ago
- Business
- Mint
Natco Pharma shares to be in focus on Thursday after ₹2,000 crore acquisition move. Details here
Pharmaceutical firm Natco Pharma's share price will be in focus of stock market investors on Thursday, 24 July 2025, after the company's board of directors approved the ₹ 2,000 crore acquisition move of a South African firm, according to an exchange filing. Natco Pharma will acquire over 5.16 crore shares of Adcock Ingram Holdings Ltd, South Africa, for a total investment cost of ₹ 2,000 crore, including the transaction cost and other expenses. 'To acquire 51,643,319 Shares (5,03,51,444 Ordinary Shares from public and 12,91,875 Treasury Shares/Fresh Issuance from Adcock Ingram Holdings Limited) at a cash offer of ZAR 75.00 (approximately US$ 4.27) per share, i.e., 35.75% (inclusive of prior to acquisition shareholding of 0.80%) of shares of the Adcock Ingram Holdings Ltd, South Africa, with a total investment cost of approx. ₹ 2000,00,00,000/- (Rupees Two Thousand Crores only) including the transaction cost and other expenses,' the company informed BSE through the filing. The company will also incorporate NATCO Pharma South Africa Proprietary Limited, with an investment of up to ₹ 2,100 crore. Natco Pharma share price closed 2.01% higher at ₹ 1,034.75 after Wednesday's stock market session, compared to ₹ 1,014.35 at the previous market close. The company announced the acquisition update after the market operating hours on 23 July 2025. The pharmaceutical company's shares have given stock market investors more than 41% returns in the last five years. However, the stock has lost 17.92% in the last one-year period. On a year-to-date (YTD) basis, the shares are down 26% in 2025, but are trading 18.96% higher in the last one-month period. Natco Pharma shares hit their 52-week high level at ₹ 1,638.35 on 12 September 2025, while the 52-week low level was at ₹ 660.05 on 7 April 2025, according to BSE data. The company's market capitalisation (M-Cap) stood at ₹ 18,533.39 crore as of the stock market close on Wednesday, 23 July 2025. Read all stories by Anubhav Mukherjee
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Business Standard
5 hours ago
- 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).
