South Africa’s Ascendis Health has extended the sale period process for Cyprus subsidiary Remedica in a bid to attract more potential investors.
The Cypriot pharmaceutical industry is considered a major asset for Ascendis which is suffering from liquidity problems. As noted in the July-December 2018 company report, the process of promoting Remedica’s sale is a key priority – to such an extent that, if it succeeds, then the entire strategy of the Group will change.
Ascendis is controlled by Coast2Coast investment fund which took over Remedica in 2016 for €170 million and with an additional €86 million to be paid over a three-year period.
At the beginning of 2018 it was announced that an offer was made for the acquisition of the Cypriot company by an interested investor within the deleveraging process applied by the mother company to improve its financial results.
Even though the interested buyer was never announced, the news were received positively by investors and a rise of Ascendis share, which was under pressure, followed.
The announcement that Remedica’s sale process is to open now for additional potential stakeholders could also mean that either the initial interest expressed was not satisfactory, or that in the last few weeks other suitors came to the forefront.
However, despite the financial problems burdening the mother company over recent months, the Cypriot pharmaceutical industry continues to improve its financial state of play.
An indication is the fact that, for the reported period, its turnover rose to €42.7 million compared to €39.2 million the same period last year.