South Africa’s Ascendis Health is very close to selling Cyprus subsidiary Remedica, according to their annual company report ending June 30, 2019.
The report also noted that talks with a potential investor are in a very advanced stage and that important announcements should be expected soon.
The Cypriot pharmaceutical industry is considered a major asset for Ascendis which is suffering from liquidity problems.
The South African group’s financial state of play remained difficult considering that the year ended with a loss of €257 million from good will.
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.
But in March this year, Remedica’s sale process opened for additional potential stakeholders. This meant that either the initial interest expressed was not satisfactory, or that other suitors had come to the forefront.