Ascendis Health shareholders vote overwhelmingly in favour of delisting from the JSE

 Ascendis Health on Tuesday announced that the vast majority of its shareholders have voted in favour of delisting the company from the main board of the JSE, marking the next phase of its successful strategic turnaround and growth journey.

Shares in Ascendis Health, which is a South African health and wellness investment holding company were unchaned on the news. Ascendis Health first proposed delisting from the JSE on  June 29, 2023

Of the shareholders who took part in the vote, almost 93% voted in favour of delisting. The holders of a majority of Ascendis shares have also indicated to Ascendis Health’s management that they want to remain on as shareholders after the delisting, showing strong support for the strategic direction that has been charted by the Ascendis management to unlock greater value in an unlisted environment.

The delisting, which will be funded through a combination of internally generated resources and borrowings from RMB Private Bank, follows the board’s earlier approval of a resolution to proceed with the transaction at an offer price of R0.97 per share, which independent experts concluded was a fair price. Directors Carl Neethling and Theunis De Bruyn recused themselves from the board’s deliberations and voting.

Once staring bankruptcy in the face, Ascendis Health has undergone a comprehensive strategic transformation over the past two years, resulting in a significantly stronger balance sheet, improved cash flow, and solid organic growth. Having successfully eliminated its legacy debt and restored operational stability, the company now stands on a robust financial footing, well-positioned to unlock further value through agility and focused execution.

“The overwhelming strong support from our shareholders confirms confidence in the strategy we have pursued over the past two years,” said Carl Neethling, the chief executive of Ascendis Health. “Our turnaround has stabilised the business and created a platform for sustainable growth. As a smaller company, the listed environment imposes regulatory and cost constraints that limit our ability to move quickly on transactions that could unlock meaningful value. Delisting will allow us to pursue opportunities with greater flexibility and efficiency.”

Ascendis Health said its board believes that delisting represents the most effective mechanism to unlock and return value to shareholders while enabling Ascendis Health to pursue strategic initiatives, such as acquisitions and disposals, more effectively. Compliance costs and disclosure obligations can weigh heavily on strategic agility.

Ascendis Health chief financial officer Lihle Mbele said, “This is a forward-looking decision grounded in the company’s improved fundamentals and clear growth potential. Operating as an unlisted company will allow us to execute our strategy faster, respond more effectively to market opportunities, and continue building long-term value for all stakeholders including the best offerings for consumers. We are heartened that so many existing shareholders believe in that vision and still want to be a part of it.”

The offer to shareholders and delisting will now be implemented. The last day of trade in Ascendis shares to be eligible to participate in the delisting offer will be November 25, 2025, and should all conditions be met, Ascendis shares will be suspended from trade on the JSE on December 1, 2025.  The date of the termination of listing of Ascendis shares is expected to be December 4, 2025.

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