Stephen Saad, Aspen Group Chief Executive. image: supplied. Stephen Saad, Aspen Group CEO. .
Image: Supplied
Aspen Pharmacare Holdings' (Aspen) share price leaped over 7% on the JSE on Friday after it announced the completion of its R27 billion sale of its Asia Pacific (APAC) business.
Marking a milestone in the group’s strategy to realise value, proceeds from the A$2.37bn transaction will strengthen Aspen’s balance sheet and provide enhanced financial flexibility.
The share price ended at R144,70 on Friday. The final divestment price is some R2bn more than originally anticipated due to exchange rate movements. The divestment was made to Australian private equity firm BGH Capital.
“This transaction represents a compelling outcome for Aspen and is a significant milestone in our ongoing strategy to unlock and realise value for shareholders. Importantly, it demonstrates the inherent value that has been created within Aspen over time,” said Aspen group chief executive, Stephen Saad.
The net proceeds of R27bn will primarily be applied to Aspen’s debt, which stood at R28.6bn at the end of December 2025. By June 30, 2025, Aspen's tangible net asset value per share was reported as R156,46.
The APAC business, originally established as a relatively modest start-up with limited resources in Australia in 2001, has evolved into a meaningful contributor to Aspen’s earnings, cash flows, and overall market capitalisation.
“From its early beginnings, the business segment has grown into a leading pharmaceutical entity in the region, making a sustainable and significant financial contribution to the group. The realisation of this value through the transaction underscores the strength of Aspen’s operating model,” said Saad.
Looking ahead, Stephen expressed the group’s support for the business under its new ownership.
Aspen stated that their strategy is to further unlock the underlying sum-of-the-parts value of the group, as its board believes that the share price does not fully reflect the intrinsic value of Aspen’s underlying businesses and growth prospects, particularly in light of both the improved balance sheet position and future earnings profile of the continuing operations.
The enhanced balance sheet flexibility will also provide greater scope to consider share buybacks as a means of delivering returns to shareholders, he said.
“As the APAC business embarks on its next chapter under new ownership, we wish the company, its management team, and all employees continued success,” he said.
For the financial year to June 2026, the group has targeted normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) to be at least double the first half EBITDA of R3.8bn billion, supported by strong second half growth relative to the 2025 second half EBITDA of R2.4bn. Double-digit growth in normalised headline earnings is anticipated.
BUSINESS REPORT