Johannesburg - Top executives in listed health product provider Ascendis have plugged millions into buying shares as it successfully raises cash.
CEO Karsten Wellner on Friday bought shares worth R9.5 million as part of the rights offer, while CFO Kieron Futter bought almost R1 million-worth.
Non executive directors also showed their confidence in the company, with Chris Dillon spending R30 million on stock and Gary Shayne, directly and indirectly, investing just more than R170 million.
The company said in a statement to shareholders on Monday that its rights offer to raise R1.2 billion was oversubscribed, with support received for 300 percent of the offer. Ascendis is home to products such as Solal.
Ascendis had undertaken the rights offer to partially fund its purchase of Remedica Holdings, a pharmaceutical company based in Cyprus, as well as Scitec International, a European sports nutrition company.
Both these purchases will cost Ascendis at least 430 euros, or about R6.5 billion at the current rate.
In a statement issued in May, Ascendis explained it wanted to invest in these companies because it wants to to complement its growth in the domestic health and care market with international expansion through the acquisition of platform businesses and bolt-on acquisitions.
Read also: Ascendis: Acquisitions worth R7.3bn on track
Shares in Ascendis Health, which operates in plant, animal and human health, were down 2.59 percent by lunch to trade at R24.43. It has gained 60.77 percent year-on-year, the bulk of which was during the last four months of 2015.
In the year to June 2015, it grew revenue 74 percent to R2.8 billion and headline earnings came in 53 percent higher at R209 million.
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