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Ascendis Health brings subsidiary out of business rescue

Ascendis health production line. Photo Supplied

Ascendis health production line. Photo Supplied

Published Oct 5, 2023


Ascendis Health said yesterday its subsidiary Surgical Innovations had come out of voluntary business rescue.

Last month Ascendis said that Surgical Innovations was expected to shortly exit a successful, but challenging, business rescue process pursuant to which relationships with suppliers, customers and other stakeholders have been strengthened, and outstanding disputes have been resolved.

“The board of directors of Surgical Innovations is pleased to advise that Surgical Innovations has now successfully exited Business Rescue and remains confident that Surgical Innovations will continue in existence as a solvent and commercially viable operation,” Ascendis Health’s directors said in a statement yesterday.

The continuing recovery at Ascendis comes at a time when its board is mulling over a delisting, following discussions with a consortium led by its chief executive officer Carl Neethling.

At the end of last month the group announced that for the first time since 2013, its balance sheet was unencumbered following a long period of recapitalisation, debt restructuring and other corporate activity that was required to restore the group to health.

Due to the business rescue proceedings, Surgical Innovations had ceased to be consolidated with the group from 12 May, 2023, resulting in the deconsolidation of its net asset value and the recognition of a profit from the loss of control amounting to R73 million.

Ascendis’ share price fell 1.37% to 72 cents yesterday afternoon, bringing the price close to the 78 cents it traded at a year earlier. Ascendis has indicated that shareholders might not get much of a premium from around 69 cents, if an offer was made to shareholders for the delisting.