South Africa’s Aspen Pharmacare Holding has made a reduced bid to acquire Sigma Pharmaceuticals, a move which still pleases analysts who feared the deal could be called off.

In May, Aspen bid A$707 million (around $590 million) or A$0.60 per share to buy Sigma, which is Australia’s largest generics player, but has now reduced its offer to A$648 million, or A$0.55 per share. As with the original bid, Apsen will assume A$785 million of Sigma’s net debt.

However, the proposed transaction is subject to a number of conditions, notably an extension of the exclusive due diligence period up to August 2. It also includes a clause that insists on “no termination or amendment of certain material contracts as a consequence of the potential change in control of Sigma”.

The Melbourne-based firm’s board says it is considering the proposal and recommends that shareholders take no action at this stage. Investors seem pleased, however, and Sigma shares were up 5.5% to around A$0.45, still well below the revised offer.