Indian company buys R4 billion chunk of South African pharmaceutical giant
India-based Natco Pharma will soon acquire a large stake in Adcock Ingram, with the pharmaceutical company delisting from the JSE.
Natco Pharma specialises in research, development, manufacturing, and marketing pharmaceutical products. The company has a market cap of around R30 billion.
In July, the company offered R75 per share to buy out Adcock Ingram’s minority shareholders, with the local brands including Panado, Allergex, and Myprodol.
Anchor Capital Equity Analyst Sean Culverwell broke down the offer when it was announced, stating that it was a strong way to end Adcock’s long spell in “minority purgatory.”
Bidvest took control of Adcock Ingram in 2019 via a roughly 65% stake, but this saw the company’s free float diminishing and liquidity drying up, meaning that the delisting felt inevitable.
“If the offer is accepted, Natco will hold a 35.75% stake in Adcock Ingram, valued at roughly R4 billion, and it will be delisted from the JSE,” said Culverwell.
Bidvest has signalled that it is prioritising capital to scale its offshore services platform, with Bidcorp potentially being unbundled from the group.
“Against that backdrop, Natco’s move and Bidvest’s choice to hold both make sense to us,” Culverwell added.
“Bidvest’s 64% stake is excluded from the deal, and 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.”
After receiving approval from shareholders in September, Adcock Ingram has now announced that the offer had become unconditional.
Consequently, Adcock Ingram will proceed with the implementation of the sale, with shareholders having until 4 November 2025 to participate in the offer.
Adcock Ingram’s shares on the JSE will cease to be traded on the JSE from 10 November 2025. The share currently trades at R73.90 per share, buoyed by the offer.
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