Indian company buying big chunk of South African pharmaceutical giant
India-listed Natco Pharma has received the go-ahead to acquire a significant stake in Adcock Ingram, with the South African company’s shareholders voting in favour of a deal.
Natco Pharma specialises in research, development, manufacturing, and marketing finished dosage formulations and active pharmaceutical ingredients.
In July, Natco Pharma offered R75 per share to buy out JSE-listed Adcock Ingram’s minority shareholders.
Adcock operates, manufactures, markets, and distributes various healthcare products, including Panado, Allergex, and Myprodol.
Anchor Capital Equity Analyst Sean Culverwell broke down the offer when it was announced, noting that the offer represented a way to end Adcock’s long spell in “minority purgatory.”
“Since Bidvest took control of the company in 2019 (via a 64.25% stake), the free float has dwindled, and liquidity has dried up, so a delisting always felt inevitable,” said Culverwell.
“If the offer is accepted, Natco will hold a 35.75% stake in Adcock Ingram, valued at c. R4 billion, and it will be delisted from the JSE.”
Culverwell said that the bidder came as a surprise to Anchor Capital, even if Bidvest has signalled that it it prioritising capital to scale its offshore services platform, with Bidcorp potentially being unbundled.
“Against that backdrop, Natco’s move and Bidvest’s choice to hold both make sense to us,” he added.
“Bidvest’s 64% stake is excluded from the deal, and we believe retaining it is a strategically sound move.”
“This decision underscores Bidvest’s confidence in Adcock’s defensive earnings and domestic diversification, which still suit Bidvest’s local portfolio.”
Shareholders give the nod
The deal has now received the go-ahead from shareholders at the group’s general meeting held on 9 October 2025, with 98.66% of scheme members voting in favour of the deal.
The scheme remains subject to the fulfilment of the waiver of the outstanding conditions precedent set out in the circular.
Once the scheme becomes unconditional and the Takeover Regulation Panel has issued a compliance certificate, the issued shares will be delisted from the Main Board of the JSE.
Shareholders recorded on the Adcock Securities Register on the Scheme Record Date will receive the Per Share Scheme Consideration of R75.00 per share.
The final salient dates for implementing the Scheme and delisting Adcock Ingram from the JSE will be announced in due course.
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