Indian pharmaceutical company Natco Pharma has offered to buy out minority shareholders in Adcock Ingram, in a rare large-scale SA-India tie-up that values the drugmaker at nearly R12bn and adds to a wave of JSE delistings that have reduced investor options on the local bourse.
Under the deal, Natco has bid R75 per share for about a 36% stake in Adcock, a 44% premium to the closing price on July 18 2025 and valuing the stake in the maker of medicine cabinet staples such as Panado, Corenza-C and Compral at about R4.2bn. Bidvest will retain its existing stake of 64%.
The transaction will see Adcock, which debuted on the JSE in 2008, delist from the local bourse and operate as a privately held company.
In reaction, the shares in the company, which also supplies HIV/Aids medications and has three factories at home, skyrocketed 24% after the news.
Bidvest’s controlling stake in Adcock Ingram was built through a series of share acquisitions. In 2019, it raised its holding to more than 50%, partly by purchasing shares after the termination of Adcock's broad-based BEE scheme.
After the increase, Bidvest’s then-CEO Lindsay Ralphs was appointed chair of Adcock Ingram, effective July 1 2019.
Bidvest’s involvement with Adcock Ingram included a legal dispute stemming from a 2013—14 takeover attempt by Chile-based CFR Pharmaceuticals, now owned by US-based multinational medical devices and healthcare company Abbott Laboratories.
Bidvest challenged the financial assistance provided to CFR, arguing it contravened the Companies Act and was detrimental to shareholders. The legal action preceded the collapse of CFR’s bid, leading to Bidvest eventually increasing its stake.
“Since acquiring our shareholding in Adcock Ingram over a decade ago, Bidvest has been actively involved and aligned with management on the company’s growth focus to expand its portfolio of products,” said Mpumi Madisa, chair of Adcock Ingram and Bidvest CEO.
“Bidvest is supportive of the cash offer being made by Natco Pharma, which unlocks numerous synergies and enables a partnership to further expand Adcock Ingram’s product and geographic diversification.”
Natco Pharma, founded in 1981 and based in Hyderabad, India, is a pharmaceutical company listed on both the Bombay and National stock exchanges in India, and specialises in generic and oncology medicines.
It operates globally, with a presence in international markets including the US, Europe, Canada, Latin America, Southeast Asia, and the Middle East and North Africa.
In partnership with majority shareholder Bidvest, the Indian drugmaker plans to tap into Adcock’s existing infrastructure and regional expertise.
The deal will be financed through Natco’s internal cash reserves and backed by a R4bn irrevocable bank guarantee from Investec.
The deal has received the backing of Adcock’s independent board, which has recommended the offer to shareholders, calling the terms both fair and reasonable.
The deal forms part of a wider trend of companies delisting from the JSE. Over the past two decades, the number of companies on the bourse has steadily declined from about 850 in the late 1990s to just less than 300 now.
Several factors contribute to this pattern, including the high costs and regulatory compliance burdens associated with maintaining a public listing, especially for small and mid-sized companies.
Other drivers include mergers & acquisitions, management buyouts and some companies seeking to restructure away from public market scrutiny.
Foreign acquisitions have also played a role, with some companies choosing to delist after being taken over by international investors.
Correction: July 24 2025
A previous version of this article gave the impression that Bidvest and Natco Pharma are joint bidders. Natco alone is making the offer. We regret the error.
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