Natco Pharma is in advanced talks to acquire a majority stake in South Africa-based Adcock Holdings, sources told CNBC Awaaz.
Shares of Adcock Holdings surged 10% ahead of a scheduled board meeting today, following the company’s disclosure that it is in discussions regarding a potential deal.
Adcock Ingram, the operating company, offers a range of generic and over-the-counter medicines across Africa. It currently operates three manufacturing facilities in South Africa and two in India through a joint venture.
The stock is trading at a price-to-earnings ratio of 10, with a market capitalisation of approximately ₹4,500 crore.
CNBC Awaaz has reached out to Natco Pharma for a comment but is yet to receive a response.
Shares of Natco Pharma Ltd. are now trading 0.52% higher on Wednesday at ₹1,019.95.
