Shares in Aspen soared more than 20% on Monday after the company said it is selling its entire Asia-Pacific operations outside of China to Australia’s BGH Capital for A$2.37bn (about R26.5bn) in a deal that hands the pharma giant a premium valuation for assets it wasn’t even planning to offload. Thedeal, struck after an unsolicited approach by the private equity outfit, crystallises a valuation of roughly 11 times forward earnings before interest, taxes, depreciation and amortisation (ebitda), offloads a portfolio that contributes more than a quarter to annual ebitda, frees up cash for Aspen to pay down debt and sharpens its focus on higher-growth bets such as GLP1 injectables. At 10am on the JSE, Aspen’s share were up 22% at R115.29.
Thesale, which is subject to regulatory and shareholder approval, includes operations in Australia, New Zealand, Hong Kong, Malaysia, Taiwan and the Philippines.The Australian and New Zealand operations alone rank among Australia’s top five over-the-counter (OTC) players, with the Dandenong manufacturing facility producing everything from tablets and capsules to creams and liquids. The sale was not planned. Aspen was not actively looking to sell, but after receiving an unsolicited offer from BGH Capital, the boards of Aspen and its Aspen Global Incorporated subsidiary evaluated the proposal and concluded that it offered compelling value for shareholders.
“Following a detailed assessment and careful consideration, the boards are of the view that the proposed transaction offers Aspen’s shareholders the opportunity to realise compelling value for Aspen APAC and, accordingly, the boards will recommend that shareholders approve the proposed transaction,” the group said. The Aspen APAC business had net assets valued at about R23.2bn as of June 30 2025, according to the company’s latest audited financial statements. The group plans to use the proceeds mainly to pay down debt, simplify its lender base and reduce financing costs, giving it a leaner, more flexible balance sheet. “With APAC out of the picture, the group can now focus on its high-growth engines: commercial pharmaceuticals in emerging markets, its reshaped China operations, and sterile manufacturing in France and South Africa,” it said.
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