Aspen mulls sale of infant formula unit

11th September 2018 By: Reuters

South African drug maker Aspen Pharmacare said on Tuesday it was in discussions to sell its global infant formula business, but did not give any further details.

Aspen's infant milk formula business sells infant milk formula in the Asia-Pacific, Sub-Saharan Africa and Latin America, and has a growing presence in the Middle East and China.

"Aspen is currently engaged in discussions regarding a possible divestment of its global infant nutritionals business," the firm said in a statement.

Shares in Aspen, with operations in 50 countries, traded up after the announcement, rising 2.34% to 271.94 rand by 1419 GMT.

"It's going to inject some cash into the balance sheet," said Independent Securities trader Ryan Woods.

In January, Aspen said it would review the infant milk formula business with options including a sale to a strategic partner. The unit has factories in New Zealand, South Africa and Mexico.