Aspen shares rise after sale of nutritionals business gets nod
Drugmaker Aspen Pharmacare says the sale to Lactalis has been approved by regulators in New Zealand
Drugmaker Aspen Pharmacare says the sale of its nutritionals business — key to its plans to cut debt and win back the confidence of shareholders — has been approved by regulators in New Zealand. Its shares, which have more than halved in value since September 2018 on concern that Aspen has taken on too much debt, were 6.5% higher at R111 at noon. “"Investor concerns around debt levels nearing covenant breaches will be addressed by the disposal,” Gryphon Asset Management portfolio manager Casparus Treurnicht said. Aspen said in September 2018 it would sell its nutritionals business to France’s Lactalis. It plans to use the estimated R10.4bn in net proceeds to reduce borrowings. “Aspen is pleased to confirm that it has, earlier this morning, received confirmation from Lactalis that the New Zealand Overseas Investment Office has granted approval to Lactalis for the acquisition of Aspen’s business in that country,” Aspen said on Friday. All conditions requiring third-party approvals had...
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