The acquisition will result in Adcock Ingram becoming a privately held company, jointly owned by Natco Pharma and Bidvest Group, which will remain the majority shareholder.
The transaction was approved during a shareholders’ meeting of Adcock Ingram, where Natco’s proposal to acquire all ordinary shares in the company received the green light.
Natco made a firm offer in July this year, the company announced in a statement on the Johannesburg Securities Exchange (JSE) on Friday.
Natco's offer in July resulted into a 20 per cent jump in Adcock Ingram's share price.
Natco Pharma South Africa will acquire all the ordinary shares in Adcock Ingram other than those not already held by Natco, those currently owned by Bidvest and treasury shares of Adcock Ingram, the statement said.
More than 98 per cent of Adcock Ingram shareholders voted in favour of the Natco offer.
After completion of the share purchase, Adcock Ingram will be delisted from the JSE.
Established in 1890 in a small pharmacy, Adcock Ingram has evolved into a leading South African pharmaceutical company with an extensive range of prescription, over-the-counter (OTC), consumer and hospital products. Many of its brands have become household names in South Africa.
"As a proudly South African company, our focus lies not only in healthcare but also in the value we add to society through environmental protection, community upliftment and philanthropy," the company said on its website.
As per a PTI report, Adcock Ingram told Moneyweb website that it has ruled out any immediate shake-up to its product lineup following Natco Pharma's stake bid, saying operations will continue as normal and no brands will be cut - unless it makes economic sense.
The company said its growth prospects through the Natco deal would give it access to markets beyond Southern Africa, which had been constrained by the regulatory environment regarding control of medicine prices."In the consumer segment, we have made significant progress in the personal care market, which is not price-regulated. However, our strategy, from a regulatory and risk perspective, has been to concentrate on the Southern African market, as we would lack economies of scale in territories further afield," said Adcock Ingram CFO Dorette Neethling.
"Support from a strong, vertically integrated, and globally resourced shareholder like Natco will help with portfolio expansion, particularly in the generics segment," Neethling told the website.
Earlier, analysts said that Adcock Ingram's performance was being affected in an ailing South African economy. This was despite its expansion into the informal sector with its consumer brands.
Neethling said that the proposed transaction will also benefit Adcock Ingram by operating in the private domain with two shareholders of scale, enabling the company to have the flexibility to operate in a manner that is most efficient and commercially beneficial to Adcock Ingram.
"The potential transaction would allow Natco to strengthen its presence in South Africa and provide eligible Adcock Ingram shareholders with an opportunity to realise value now," said Neethling.
Natco said the arrangement would also give it access into the local market.
"The proposed transaction will provide Natco Pharma with a well-established entry into the Southern African market," Rajeev Nannapaneni, CEO and vice chair of Natco, said earlier.
"It will also allow Natco Pharma 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," Nannapaneni added.
"Adcock Ingram 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," Adcock Ingram Group CEO Andrew Hall said when the offer was made.
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