Aspen Pharmacare jumps the most in 25 years on R26.5bn Asian asset sale

Aspen Pharmacare rallied the most in a quarter-century after Africa’s biggest drugmaker said it will sell its assets in the Asia-Pacific region excluding China to an Australian private equity firm for R26.5 billion ($1.6 billion).

The sale of the assets in Australia, Hong Kong, Malaysia, Taiwan and the Philippines to BGH Capital (Pty) Ltd represents an enterprise value that’s about 11 times normalised earnings before interest, tax, depreciation and amortisation (Ebitda) reported in 2025, the Durban-based company said in a Sens statement Monday.

Read: Aspen to get R500m in mRNA dispute settlement

The stock surged almost 23%, the most since January 2000, paring the drop this year to 31%.

That compares with a 40% gain in the benchmark FTSE/JSE Africa All Share index.

BGH’s offer was unsolicited, and the board saw this as an opportunity to realise “compelling value” for Aspen APAC, with the net proceeds going toward reducing debt, it said.

The drugmaker sees the transaction closing in the second quarter of next year.

The sale of the business, which accounted for a quarter of group Ebitda in the most recent financial year, will enable the company to focus on China and plan the growth strategy for blockbuster diabetes and weight-loss treatment Mounjaro in Africa, for which Aspen is Eli Lilly & Co’s local distributor.

Aspen can also concentrate on reshaping its loss-making manufacturing facilities in France and South Africa, which it plans to restore to profitability in the 2027 financial year, it said.

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In April, the drugmaker disclosed a dispute with a contract-manufacturing customer for mRNA products at the facility in France that led to a loss for the year that ended 30 June.

Read:
Aspen Pharmacare plunges 30% after flagging contract manufacturing wrangle
Over R22bn wiped off Aspen’s market cap amid US fallout
Saad buys over R184m in Aspen shares

Aspen share price

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