South African pharma giant seals R26.51 billion deal

Aspen Pharmacare will sell its Australia, New Zealand and Asia Pacific assets, excluding China, to Australian private equity firm BGH Capital for R26.51 billion ($1.59 billion), the South African group said on Monday, as it looks to cut debt.

South Africa’s biggest pharmaceutical producer had no plans to sell those assets, but agreed to do so after it evaluated an unsolicited offer from BGH Capital, Aspen said in a statement.

The deal, which includes divestment of Aspen’s first venture outside South Africa, in Australia and New Zealand, will help the company reduce its debt and streamline focus on producing GLP-1 drugs and bolster turnaround efforts.

In September, the firm reported an annual loss of R1.1 billion, citing hefty asset impairments amid contractual disputes over mRNA products.