Cipla Ltd puts $220-mn bid for South African generic drug maker on hold

Cipla Ltd, one of the world's largest generic pharmaceutical companies, has put on hold its $220 million bid for buying a controlling stake in South African generic drug firm Cipla Medpro, Live Mint said yesterday , citing YK Hamied, chairman of the Cipla Ltd as saying.

Hamied did not give any reasons as to why the proposed acquisition has been put on hold.

However, the acting CEO of Cipla Medpro, Johan du Preez, yesterday told Reuters that his firm has not received any communication from Cipla Ltd on the deal being put on hold.

"I am aware of the report but I have not been able to verify it and we have not received any communication from Cipla Ltd about its withdrawal from the talks," Preez told Reuters. "As far as we are concerned, the talks are ongoing," he added.

In November 2012, Cipla Ltd offered to buy a 51-per cent stake in Cipla Medpro South Africa Ltd, for 8.55 ZAR per share, payable ex-final dividend for 2012 that had been capped at maximum of 0.1 ZAR per share.

The Mumbai-based generic firm had said that the offer is subject to various conditions, including due diligence, execution, board and regulatory approvals.