Melbourne-based Sigma Pharmaceuticals is selling its drugs unit to Africa’s largest drug maker for £513 million.
Aspen Pharmacare Holdings is making the biggest purchase by an African firm in three years to gain assets from Sigma, including its generic and over-the-counter drugs.
News of the deal led to a 10% jump in Sigma’s stocks.
Sigma, which has lost about half its value in the past year, is selling the unit at about 12 times forecast earnings before interest and taxes for the year to January.
The sale proceeds will be greater than Sigma’s net debt and will leave the company with retail and wholesale operations, it revealed.
Aspen is buying a business that Sigma blamed for a record loss in March and reduced earnings forecast in July.
Copyright Press Association 2010