Strategic Acquisition Announced
On July 23–24, 2025, Hyderabad‑based Natco Pharma confirmed plans to acquire a 35.75% stake in South Africa’s Adcock Ingram Holdings for approximately ₹2,000 crore (USD 226 million), marking a significant expansion into the African pharmaceutical market. 0
Transaction & Financial Details
The all‑cash offer is priced at R75 (USD 4.27) per share, translating to a total purchase of around 51.64 million equity shares. Including its existing 0.80% holding, Natco will hold a 35.75% interest post-acquisition. Adcock Ingram is valued at roughly R11 billion (~USD 632 million). 1
Business Rationale
Natco Pharma CEO & Vice Chairman Rajeev Nannapaneni stated the move provides a strategic gateway into the Southern African region, offering new revenue streams and access to an established pharmaceutical brand. 2
Adcock Ingram: Profile at a Glance
Founded in 1890 and listed on the Johannesburg Stock Exchange, Adcock Ingram is South Africa’s second-largest drugmaker. The firm spans prescription, over-the-counter, consumer health, and hospital segments, with last financial year revenues of approximately R9.6 billion (USD 536 million) and a net profit of USD 45 million. 3
Timeline & Stake Structure
- Offer submitted: July 23, 2025
- Expected deal closure: Within 4 months, subject to regulatory approvals 4
- Post-deal shareholding: Bidvest retains ~64.25%, Natco holds ~35.75%
- Natco pre-deal holding: ~0.8%
Market Impact & Analyst Commentary
The announcement prompted a 2.5% decline in Natco’s share price, falling to around ₹1,009 on the BSE, as investors weighed the financial implications of a large overseas deal. 5 Analysts noted the acquisition is expected to be 7–9% EPS accretive and strengthens Natco’s positioning in emerging markets. 6
Key Facts at a Glance
- Date announced: July 23–24, 2025
- Acquirer: Natco Pharma Ltd. (Hyderabad, India)
- Target: Adcock Ingram Holdings (South Africa)
- Deal value: ₹2,000–2,100 crore / USD 226 million
- Stake acquired: 35.75% via purchase of ~51.6 million shares
- Adcock valuation: ~R11 billion (USD 632 million)
- Revenue & profit (Adcock FY24): R9.6 billion revenue; USD 45 million net profit
- Expected closure: Within 4 months
- Natco share reaction: ~2.5% drop on BSE post-announcement
Trivia & Quiz Insights
Trivia fans: Adcock Ingram was first listed on the Johannesburg Stock Exchange in 1950, becoming the first pharmaceutical company to do so. 7
Quiz highlight: Natco Pharma originally founded in 1981 in Hyderabad, is known for generic oncology and hepatitis medicines—this deal is its first major investment in Africa, expanding its presence beyond traditional markets like the U.S. and India. 8
Source: Vccircle