Aspen Pharmacare sells “nutritional” division to Lactalis for $850bn, shares plunge

South Africa-based Aspen Pharmacare has divested its child food division to France-based Lactalis for Rand12.9bn ($865 million). Aspen’s shares have reacted negatively, losing 26% soon after the  announcement, probably because investors had estimated that the divestiture had potential to fetch the group at least $1bn. The price set by Aspen has been probably affected by the scandal that has recently engulfed Lactalis, as it has been discovered that, by mistake, it had produced baby milk infected with salmonella in Aspen’s plant in France.

(Source: Aspen Pharmacare)