Africa Capitalworks, an investment management company incorporated in Mauritius, has completed the acquisition of a majority stake in Uganda’s Cipla Quality Chemical Industries Ltd (CiplaCQIL).
In a statement issued on November 15, 2023, the Company Secretary at Cipla Quality Chemical Industries Limited confirmed that Africa Capitalworks has acquired 51.18% of the company shares.
“Africa CapitalWorks has successfully concluded the purchase of Cipla shares from Cipla Quality Chemicals Industries Limited. This strategic partnership marks a new chapter in our journey, bringing fresh opportunities and growth,” the company stated.
The shares comprise 51.05% from Meditab Holdings Limited and 0.13% from Cipla (EU) Limited.
Other shareholders are Capitalworks SSA 1 (11.15 percent), government employees pension fund (8.54 percent), NSSF Uganda (7.38 percent, Cipla (EU) (0.13 percent) and Yiga Joseph (0.11 percent).
In March this year, Cipla said the buyer applied to the Capital Markets Authority (CMA) for approval of the transaction in line with the Capital Markets (Takeovers and Mergers) Regulations, 2012.
CMA then approved the buyout.
In an earlier interview, Mr Ajay Pal, the Chief Executive Officer of Cipla Quality Chemical Industries Limited said there will be no change in business.
“Cipla Quality Chemicals is still a profitable business, its market is expanding and they begin to manufacture new drugs at the end of the year,” he said in an interview.
CiplaQCIL is one of the largest pharmaceutical manufacturers in East Africa and also one of the largest in Sub-Saharan Africa (SSA).
The Ugandan founders of Cipla; Emmanuel Katongole, late Frederick Kitaka Mutebi and George Baguma will each hold 2.79 percent of shares in Cipla Quality Chemical Industries and they will each acquire 1.50 percent interest in the company, which is listed on the stock exchange.