Johannesburg - Ascendis Health, the listed health and care brands company, said yesterday its R7.3 billion deal announced in May to acquire two major European health and care businesses, Remedica Holdings and Scitec International, was on track.
Remedica, a pharmaceutical manufacturer based in Cyprus, would be acquired for R4.4bn, including a deferred payment of R1.5bn after three years.
Scitec International, a leading European sports nutrition company would be acquired for R2.9bn, including a deferred payment of R340 million after one year.
Karsten Wellner, the chief executive of Ascendis Health, said all the conditions to the R1.2bn rights offer had been fulfilled. “We are also excited that both the rights offer and the vendor consideration placement are well supported by investors in the form of excess irrevocable undertakings provided,” he said.
Ascendis had secured R2.3bn in irrevocable undertakings from some shareholders and new strategic investors to participate in the R1.2bn rights offer and the subsequent R1.2bn to R1.5bn vendor consideration placement, he said.
Ascendis had also entered into an underwriting agreement with Absa Bank and HSBC Bank to underwrite any rights offer shares not subscribed.
The transactions are in line with the company’s acquisitive growth strategy. Ascendis shares fell 1.5 percent on the JSE yesterday to close at R24.99.
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