Ascendis shares down after Remedica disposal talks end
The group cited the failure to agree on key terms for the transaction as the reason for terminating the negotiations.
Ascendis has been trading under a cautionary since January, when it first announced the possibility of the disposal of its Cyprus-based unit.
The group acquired the pharmaceutical manufacturer in 2016 for 260million (R4.18billion) and Europe’s leading sports nutrition company, Scitec, for 170m. The two acquisitions were expected to lift the group’s market capitalisation to R11bn, but instead the company has been facing mounting debt and weak earnings growth. Its market capitalisation was just above R1bn yesterday.
The share price declined to R2.26 a share, down from Friday’s closing price of R2.90, after the group announced the termination of the negotiations in the morning. However, it recovered in the afternoon to R2.50 before closing at R2.40.
Source: iol.co.za