New Delhi: Natco Pharma on Wednesday announced investments of nearly Rs 2,500 crore in South Africa, including infusing Rs 1,400 crore in its arm in the country with an aim to enter new geographies.
The company will also increase its stake in South Africa-based Adcock Ingram Holdings Proprietary Ltd (Adcock Ingram) to 49 per cent from 35.75 per cent, with the "acquisition valued at Rs 1,069 crore at the prevailing exchange rate", NATCO Pharma said in a regulatory filing.
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The board of directors at its meeting held on Wednesday approved investing up to "Rs 1,400 crore in Natco Pharma South Africa Proprietary Ltd, a wholly-owned subsidiary", it added.
As for increasing stake in Adcock Ingram, Natco said it will acquire 19,618,825 shares for ZAR 92.50 (Rs 5.89) per share, thus increasing its holding from 35.75 per cent to 49 per cent with a total investment cost of ZAR 1.8 billion (Rs 1,069 crore at the prevailing exchange rate), excluding certain associated transaction costs and other expenses.
The transaction is expected to be completed before the end of July 2026, it added.
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The increase in stake in Adcock Ingram has been done with an objective of expanding geographic footprint in South Africa and the African continent, Natco said.
Founded in 1890 in South Africa, Adcock Ingram is a pharmaceutical company operating across four segments -- prescription, consumer, OTC and hospitals.
It has a diverse portfolio of products ranging from generic and branded formulations to critical-care hospital products, as well as consumer and home-care products, the company said.
