Shareholders push for new directors at debt-laden Ascendis
Two investors for the pharmaceutical group want a general meeting to address issues and make executive changes
Two shareholders of debt-laden pharmaceutical group Ascendis have called for a general meeting to appoint new non-executive directors. Mergence Investment Managers and Acanthin Capital, which collectively hold about 11% of the group, said they are pushing for the change to the board as they believed the people they wanted to see appointed could improve its performance. “They have a track record when it comes to turning business around,” said Mergence chief investment officer Brad Preston.
Its poor performance saw its share price fall from a high of around R28 a share in September 2017 to its current pricing of about R4.13 a share. “There has been significant value destruction,” said Preston. The slump in its share price forced Coast2Coast, the holding company of former non-executive director Gary Shayne, who co-created the pharmaceutical group in 2008, to significantly reduce its holdings after it made loans against its shares, to underwrite Ascendis’s R750m rights offer in...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.