Ascendis Health concludes a R50 MLN deal with WDBIH - CNBC Africa

Ascendis Health concludes a R50 MLN deal with WDBIH


by Trust Matsilele 0

WDBIH will increase its shareholding in Ascendis through a transaction with Coast2Coast Investments. PHOTOS: prlog/i.ytimg

Ascendis is a health and care brands company operating in plant, animal and human health.

The share issue was facilitated by Ascendis due to WDB Investment Holdings Proprietary Limited’s (WDBIH ) further intent to increase its shareholding in Ascendis through the conclusion of a transaction with Coast2Coast Investments Proprietary Limited, the majority shareholder of Ascendis.

(READ MORE: Ascendis Health to acquire RCA shares)

Details of this subsequent investment will be finalised in the next 6 months.

“The rationale for concluding the investment directly with C2C, as in the case of the recent 200 million rand transaction with Mineworkers Investment Company, is to allow Ascendis to benefit from increased BEE ownership without diluting the positions of the current Ascendis shareholders,” said the company.

[DATA ASC:Ascendis Health Limited] chief executive Karsten Wellner welcomed the development.

“This exciting development will allow WDBIH to increase its shareholding in Ascendis over a three year period through the transfer of Ascendis shares held by C2C,” said Wellner.

“The Initial Investment will have an immaterial financial effect on the earnings, headline earnings, adjusted headline earnings or net asset value per share attributable to Ascendis shareholders.”

This is because only 1.5 per cent of the Ascendis shares in issue as at 12 September 2014 represent additional shares, as a result of the investment.

(WATCH VIDEOAscendis Health revenue improves by 114%)

The Initial Investment will see WDBIH acquire 3.6 million Ascendis shares, as stipulated within the JSE listing requirements.

“WDBIH is a well-established and a highly respected BEE partner and is committed, along with the MIC, to contributing notably to the continued success and transformation of Ascendis,” says Wellner.

Wellner says his company view direct BEE ownership as a prerequisite for responsible and sustainable growth in South Africa, especially for a listed company.