HEALTHCARE
Foreigners buy declining Ascendis shares
Foreign shareholders now hold nearly 22% of Ascendis’s shares, from just over 5% about 18 months ago
Foreign shareholders now hold more than a fifth of Ascendis Health’s shares, which have come under pressure amid concerns about its ability to grow organically and its debt levels. "We’ve seen good interest from international investors," said CEO Karsten Wellner. Foreign shareholders now hold nearly 22% of Ascendis’s shares, from just over 5% about 18 months ago. Wellner said most parts of the business were showing strong organic growth, and share price declines were attributable to divestments by small and mid-sized investors in SA and to hedge funds taking short positions in the company. Since reaching a high of R28.97 in September 2016, Ascendis’s stock has fallen to below R17. This week the group announced a R750m rights offer to pay off recent acquisitions. When buying companies, the group defers about a third of the purchase consideration, usually for three years. Its deferred liabilities are now worth R1.4bn, more than half of which will be paid off via the rights issue. "We’...
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