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 In December, Aspen said its wholly owned subsidiary incorporated in
Mauritius, Aspen Global Incorporated, and its Australian
subsidiaries had entered into a distribution arrangement with
Alphapharm, a subsidiary of Mylan in respect of the portfolio
commercialized in Australia and New Zealand.
That deal included an option for Mylan to buy the portfolio.
"The divestment is in line with the group's ongoing portfolio
management approach and its stated intention to not only acquire
value enhancing products, but to also divest of non-core assets,
thereby ensuring enhanced operational focus," Aspen said in a
statement.
Aspen added that 93 million Australian dollars will be payable by
May 29, 30 million in January 2020 and up to 65 million will be
payable in September 2020.
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The proceeds will be used to reduce Aspen's gearing, which has
worried investors and caused a sharp decline in the drugmaker's
shares.
The company's net debt to EBITDA (earnings before interest, tax,
depreciation and amortization) stood at 4.4 times at the end of
June, at the upper end of a threshold of 4.75 times negotiated with
its creditors in December.
It also sold its infant formula business to French dairy giant
Lactalis to bring borrowing down.
On Friday the company said it has received confirmation from
Lactalis that the New Zealand Overseas Investment Office has granted
approval to Lactalis for the acquisition of its business in that
country.
(Reporting by Nqobile Dludla; editing by Jason Neely and Louise
Heavens)
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