India-based pharmaceutical company Natco Pharma is set to acquire a significant stake in Adcock Ingram, marking a major shift in the ownership structure of one of South Africa’s leading healthcare firms. The acquisition will coincide with Adcock Ingram’s delisting from the Johannesburg Stock Exchange (JSE), ending its tenure as a publicly traded company.
Strategic Acquisition and Offer Details
Natco Pharma, which specializes in the research, development, manufacturing, and marketing of pharmaceutical products, has a market capitalization of approximately R30 billion. In July 2025, the company made a formal offer of R75 per share to buy out Adcock Ingram’s minority shareholders, targeting popular local brands such as Panado, Allergex, and Myprodol.
The offer was described by Anchor Capital equity analyst as a decisive move to end Adcock’s prolonged period in “minority purgatory.” Since Bidvest acquired a 65% controlling stake in Adcock Ingram in 2019, the company’s free float has steadily declined, resulting in low liquidity and making a delisting increasingly inevitable.
If the offer is accepted, Natco will hold a 35.75% stake in Adcock Ingram, valued at approximately R4 billion. The delisting from the JSE will follow shortly thereafter.
Sean Culverwell
Bidvest has opted to retain its 64% stake, which is excluded from Natco’s offer. This decision aligns with Bidvest’s broader strategy to scale its offshore services platform, with speculation around a potential unbundling of Bidcorp from the group.
Culverwell noted:
Against that backdrop, Natco’s move and Bidvest’s choice to hold both make sense to us. Retaining the stake reflects Bidvest’s confidence in Adcock’s defensive earnings and its diversified domestic portfolio.
Following shareholder approval in September, Adcock Ingram confirmed that the offer had become unconditional, paving the way for the transaction’s implementation. Shareholders have until 4 November 2025 to participate in the offer. Adcock Ingram’s shares will cease trading on the JSE from 10 November 2025. The stock is currently trading at R73.90 per share, buoyed by the premium offer from Natco.
The acquisition marks Natco Pharma’s entry into the South African pharmaceutical market, and potentially sets the stage for deeper regional expansion. For Adcock Ingram, the move offers a new chapter under strategic international ownership, while Bidvest continues to benefit from its majority stake.
The transaction also reflects a broader trend of consolidation and strategic realignment in South Africa’s healthcare and pharmaceutical sectors, as companies seek to optimize capital allocation and unlock shareholder value.
