Ascendis set to sell Scitec to restore liquidity

DURBAN – JSE-listed Ascendis Health plans to sell its subsidiary, Scitec, to cut its ballooning debt of R5billion and restore liquidity to its balance sheet.

The group yesterday announced the sale of Europe’s leading sports nutrition business for 5million (R101.4m).

The sale comes after the health and wellness company embarked on an international growth strategy by acquiring businesses in Europe in 2015. However, the acquisitions left the company with a huge debt as reported in the six months to end December 2019.

The debt ballooned after Ascendis Health acquired Scitec in Hungary for 170m, as well as Cyprus-based Remedica for 260m, both in 2016. To contain the debt that is threatening to spiral out of control, the group has resorted to sell its non-core assets and exit non-performing operations.

Ascendis Health said it had concluded a sale and purchase agreement between its subsidiary, Ascendis Health International Holdings, and Atlas Invest, a Dutch limited liability company, for the disposal of its Scitec business unit housed in its consumer health segment.