Ascendis Health, a listed company on the Johannesburg Stock Exchange (JSE), is contemplating delisting from the exchange to expedite its restructuring efforts and unlock value for its shareholders.
- The company believes that delisting is a crucial component of its strategy, allowing for a more efficient return of capital to Ascendis shareholders. The move is aimed at streamlining decision-making processes and making structural changes more easily.
- Ascendis Health has initiated talks with a consortium led by ACN Capital IHC (Pty) Limited, helmed by CEO Carl Neethling, who is also a major shareholder. The discussions revolve around a potential delisting and unlocking of shareholder value.
- Neethling highlights that an unlisted company provides greater maneuverability and faster implementation of changes compared to a listed entity. Ascendis, with a market capitalization of around R400 million, faces regulatory compliance challenges that hinder quick decision-making.
- While discussions are underway, no formal offer has been made by ACN Capital. The announcement serves to inform shareholders of the ongoing discussions and manage expectations regarding potential offers.
- Ascendis cautions shareholders not to anticipate a significant premium to the current share price in the event of an offer from ACN Capital. However, investors who can invest in unlisted shares may expect favorable returns in the future.
- Ascendis Health has been actively working on reducing debt and streamlining its operations. The company has undergone a significant restructuring process, including the sale of subsidiaries and a rights issue to recapitalize operations.