This article first appeared on GuruFocus .
Aspen Pharmacare Holdings Ltd. ( APNHY ) delivered its strongest rally in a quarter-century after the company said it plans to sell its Asia-Pacific assets excluding China for 26.5 billion rand, or about $1.6 billion. The announcement triggered a 21% jump in the shares, the biggest one-day gain since January 2000, helping narrow the stock's decline this year to 31%, according to data cited by Bloomberg and the JSE. The move came as investors reassessed the balance-sheet impact and strategic reset implied by the transaction.
The assets in Australia, Hong Kong, Malaysia, Taiwan, and the Philippines are set to be sold to BGH Capital, with Aspen saying the deal represents an enterprise value of roughly 11 times normalized earnings before interest, tax, depreciation and amortization reported in 2025. Management noted the offer was unsolicited, but the board viewed it as an opportunity to realize what it described as compelling value for the Asia-Pacific business. The transaction, which accounted for about a quarter of group Ebitda in the most recent financial year, is expected to close in the second quarter of next year, with net proceeds intended primarily for debt reduction.
Following the sale, Aspen said it plans to sharpen its focus on China and outline a growth strategy in Africa for Mounjaro, the diabetes and weight-loss treatment for which it acts as Eli Lilly & Co.'s ( NYSE:LLY ) local distributor. The company also said it can concentrate on restructuring its loss-making manufacturing facilities in France and South Africa, which it aims to restore to profitability in the 2027 financial year. That effort follows a dispute disclosed in April with a contract-manufacturing customer for mRNA products at the French facility, which contributed to a loss for the year ended June 30.
