[South Africa] Ascendis Health announces results of fully underwritten rights offer of R750m
Ascendis Health announced yesterday the results of a fully underwritten renounceable rights offer to raise R750 million. The proceeds will be used to settle EUR50m of the deferred vendor consideration payment owed to the sellers of Remedica Holdings, an international pharmaceutical business acquired in 2016, at a discount. Ascendis and the sellers of Remedica Holdings have agreed that Ascendis will settle EUR46.2m in advance of the due date.
The rights offer was priced at R20.00 per share, being a 5% premium to the market price at the time of announcing the rights offer.
The rights offer was fully underwritten by long-term investment company Coast2Coast Capital, who effectively took up 26% of the rights offer shares in terms of their rights allocation and a further 73% of the rights offer shares in terms of the underwrite.
Commenting on the results of the rights offer, Dr Karsten Wellner, CEO of Ascendis Health, said: "The underwriting of the rights offer by our major shareholder, Coast2Coast Capital, who not only followed their rights but took up the remaining shares in terms of the underwrite indicates confidence in Ascendis. This confidence is reinforced by the recent purchasing of shares by management and directors on the market. The early settlement of the deferred vendor payment will help in degearing the balance sheet and supports our aims in achieving our optimal capital structure.”