STOCKS NEWS AFRICA-S.Africa's Cipla Medpro plunges on report deal on hold

Last Updated: Mon, Feb 11, 2013 10:40 hrs

By Tiisetso Motsoeneng

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1015GMT 10Feb13 - S.Africa's Cipla Medpro plunges on report M&A on hold


Shares in Cipla Medpro drop more than 6 percent on a report that its Indian suitor Cipla Ltd has shelved plans to buy a controlling stake in the South African generic drug firm.

India's Economic Times quotes YK Hamied, chairman of Cipla Ltd, as saying the $215 million deal for 51 percent stake of the nation's third-biggest generic drug maker is on hold.

"South Africa is not the only market for us to grow. Our new CEO will take a call on whether to proceed with the deal or not," the newspaper quoted Hamied as saying.

Shares in Cipla Medpro drop 6.3 percent to 8.81 rand, still above the 8.55 rand Cipla Ltd put on the table in November.

Investors had been betting on sweetened offer for months after Cipla Medpro won a big portion of a government contract to supply HIV/AIDS drugs to state hospitals days after Cipla Ltd announced its bid.

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0940GMT 10Feb13 - S.Africa's Implats falls, sees lower profit


Shares in Impala Platinum fall more than 3 percent as the South African platinum miner says first-half profit likely plunged by as much as 79 percent.

The world's No.2 producer of the white metal, whose results were hit by a writedown of payments it owed, rising costs and lower output, is down 3.12 percent at 160 rand.

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