Aspen Pharmacare Holdings Ltd., Africa’s largest drug manufacturer, recorded its biggest stock rally in 25 years after announcing plans to divest its Asia-Pacific operations (excluding China) to Australian private equity firm BGH Capital Pty Ltd. for R26.5 billion ($1.6 billion).
The transaction covers Aspen’s businesses in Australia, Hong Kong, Malaysia, Taiwan, and the Philippines, representing an enterprise value approximately 11 times normalized EBITDA for 2025, according to a statement from the Durban-based company.
Following the announcement, Aspen’s shares surged 24%, marking the steepest single-day gain since January 2000. This rebound trimmed the company’s year-to-date decline to 29%, compared to a 39% rise in the benchmark FTSE/JSE Africa All Share Index.
Aspen revealed that BGH’s offer was unsolicited, but the board viewed it as an opportunity to unlock “compelling value” for its Asia-Pacific unit. Net proceeds from the sale will primarily be used to reduce debt, strengthening Aspen’s balance sheet.
The deal, which contributed roughly 25% of group EBITDA in the latest financial year, is expected to close in Q2 2026. Post-sale, Aspen plans to focus on China and accelerate its growth strategy for Mounjaro, a blockbuster diabetes and weight-loss treatment for which Aspen is Eli Lilly & Co.’s local distributor in Africa.
Additionally, the divestment will allow Aspen to concentrate on turning around its loss-making manufacturing facilities in France and South Africa, with a goal of restoring profitability by FY2027. The company previously disclosed a dispute with a contract-manufacturing client for mRNA products at its French plant, which contributed to a loss for the year ended June 30.
