India-listed pharmaceutical company Natco Pharma has received shareholder approval to acquire a significant minority stake in Adcock Ingram, a leading South African healthcare firm. The move marks a major step forward in Natco’s international expansion strategy and signals a new chapter for Adcock Ingram, which is set to be delisted from the Johannesburg Stock Exchange (JSE).
Natco Pharma, known for its expertise in the research, development, manufacturing, and marketing of finished dosage formulations and active pharmaceutical ingredients, made a formal offer in July 2025 to acquire Adcock Ingram’s minority shareholders at R75 per share.
Adcock Ingram is a household name in South Africa, manufacturing and distributing a wide range of healthcare products, including well-known brands such as Panado, Allergex, and Myprodol. The company has long operated under the majority control of Bidvest, which holds a 64.25% stake acquired in 2019.
According to Sean Culverwell, Equity Analyst at Anchor Capital, the offer represented a strategic opportunity to resolve Adcock’s prolonged status in “minority purgatory.” With Bidvest’s dominant shareholding, free float liquidity had diminished, making a delisting increasingly likely.
Upon completion of the transaction, Natco Pharma will hold a 35.75% stake in Adcock Ingram, valued at approximately R4 billion. Bidvest’s majority stake is excluded from the deal, and the group has opted to retain its position, which analysts view as a strategically sound decision given Adcock’s defensive earnings profile and diversified domestic operations.
Culverwell noted that while Natco’s bid came as a surprise, it aligns with Bidvest’s broader strategy to prioritize capital allocation toward scaling its offshore services platform, with speculation around a potential unbundling of Bidcorp.
The acquisition received overwhelming support at Adcock Ingram’s general meeting held on 9 October 2025, with 98.66% of scheme members voting in favour. The transaction is still subject to the waiver and fulfilment of outstanding conditions precedent, as outlined in the scheme circular.
Once these conditions are met and the Takeover Regulation Panel issues a compliance certificate, Adcock Ingram’s shares will be delisted from the JSE Main Board. Shareholders recorded on the Scheme Record Date will receive the Per Share Scheme Consideration of R75.00. The final timeline for the implementation of the scheme and delisting will be announced in due course.
