GlaxoSmithKline said on Wednesday it has agreed to sell one third of its shareholding in South African company Aspen Pharmacare, four years after buying into Africa’s largest pharmaceutical manufacturer.
GSK agreed to sell 28.2m shares in Aspen, for $694M, leaving it with 56.5m shares, or 12.4 per cent of the company.
According to Bloomberg, shares in Aspen fell as much as 5.6 percent, the most in five months after GSK cut its stake in the company at a discount to the share price.
GSK said it will keep a seat on Aspen’s board and intends to remain a significant shareholder in the South African company. Proceeds from the sale of the stake will be used for general corporate purposes
Aspen is a leading generics manufacturer in the Southern hemisphere and is Africa’s largest pharmaceutical manufacturer. Aspen has production capabilities for a wide variety of product types including tablets, capsules, eye drops, injectable products (including lyophilized vials), oral contraceptives, form-filled seals, suppositories, liquids, creams, ointments, infant nutritional products, and specialist active pharmaceutical ingredients.