Johannesburg - Global pharmaceutical company Cipla announced on Sunday that it has agreed to divest its 100% stake in Cipla Agrimed SA and Cipla Vet SA to Ascendis Health SA.
The value of the agreement is R375m with potential revision linked to the financial year 2017 performance to group companies of Ascendis Health SA and it is subject to customary closing conditions. The deal is expected to close in the next three months.
Inyanga directly holds a 57% stake in Cipla Agrimed and a 43% stake is held through Cipla Vet. The transaction is subject to regulatory approvals.
Cipla SA CEO Paul Miller said Cipla has taken the strategic decision to divest and sell its veterinary division.
"In line with this new strategy, the company will increase its focus and efforts to care for life, for all South Africans. By doing this, Cipla will have a more intensive approach to grow our portfolio of quality and affordable products, with an aim to provide an even broader range of pharmaceutical solutions in more therapeutic areas in the South African Healthcare sector,” said Miller.
Ascendis Health is a South Africa based health and care brands company operating in human, plant and animal health.
Cipla Agrimed operates in the farm animals segment, with sales mainly attributable to agricultural co-operatives and bulk farm purchasing organizations. Cipla Agrimed has a leading position in antimicrobials and endectocides in South Africa.
Cipla Vet operates in the companion animal segment with sales primarily to wholesalers. Cipla Vet has a strong presence in the South African market, with leading positions in proton pump inhibitors, non-steroidal anti-inflammatory Drugs (NSAIDs) and supplements.