Merck deal set to spur Aspen bond sale
IOL Business/ Bloomberg - Jul 17th, 08:49
Aspen Pharmacare’s purchase of a Merck division would probably spur South Africa’s largest drug maker to sell its first bonds to diversify debt, money manager Anchor Capital said on Friday.
Aspen said last month that it would buy a manufacturing unit from Merck, the second-largest US drug maker, with the option to add a products division in a deal valued at $1 billion (R10bn).
The acquisition would be partly financed by new debt facilities locally and overseas, chief executive Stephen Saad said then.
“I’m surprised Aspen hasn’t already issued bonds, but with the growth they are doing, I’d imagine they are looking at that,” said Peter Armitage, who manages assets of R200 million at Anchor Capital.
“There are more acquisitions to come and any bonds they do issue would be well received.” Aspen, which has financed previous growth with bank loans, expected a cost of funding of 5 percent for new debt, deputy chief executive Gus Attridge said on June 27.
CFR Pharmaceuticals, a Chilean drug maker that will enter Africa if a bid this month for Johannesburg-based Adcock Ingram is successful, has a $300m bond due in December 2022 with a yield of 5.8 percent.
Merck’s $1bn bond due in May 2018 yields 1.7 percent. Aspen had outstanding debt of R10.4bn, according to its first-half earnings published on March 7.
The stock shed 0.19 percent to close at R233.49 on the JSE yesterday. – Bloomberg © Independent On-line 2013. All rights reserved
Meatco and Witvlei bid for Norwegian meat quota, Namibia
22/10/2013 - 08:31
Meat processing companies, Meatco and Witvlei Meat, have once again bid for the lucrative beef export quota to Norway, which is set at 1600 tonnes per year and pays 72% more than exports to other parts of Europe. Earlier this month, the Meat Board of Namibia requested for bids for the Norway quota from local meat companies.
Glassmaker expands in Africa to boost revenue, Kenya
16/10/2013 - 11:38
East Africa Glassware Mart plans to double its revenue to $34 million (Sh2.9 billion) by opening in 10 new markets within Africa over the next three years.
PC market doing better than expected
15/10/2013 - 07:55
Despite a year on year decline of 7.6%, the worldwide PC market didn’t do as badly as it was expected to do in Q3 2013.
Fountainhead delivers on market guidance and enters a new phase
14/10/2013 - 10:00
Fountainhead Property Trust last week declared a distribution for the 11 months to 31 August 2013 in line with market guidance and 2% down on its distribution for the comparable 11 months in 2012. The Trust changed its financial year-end from 30 September to 31 August.
Asian bacteria threatens Florida oranges
14/10/2013 - 09:13
Washington - Citrus production in Florida, the world's second largest orange juice supplier after Brazil, is being threatened by a bacteria from Asia that has scientists racing for a remedy.