Ascendis Health Ltd. said it is in negotiations relating to an unsolicited offer for its Cyprus-based business unit Remedica Ltd.
The Johannesburg-based healthcare products manufacturer and distributor also advised its shareholders "to exercise caution when dealing in the company's securities."
Ascendis, which is listed on the Johannesburg Stock Exchange, saw its shares rise 12.52% to 6.2 South African rand per share at market close Jan. 14.
Remedica accounted for €87 million of Ascendis' €244 million in revenue from continuing operations for the 12 months ended June 2018.
In July 2018, Ascendis said it was planning to divest its noncore operations, including Ascendis Sports Nutrition, Ascendis Direct and a manufacturing facility, as part of its ongoing strategic review.
As of Jan. 11, US$1 was equivalent to 13.87 South African rand.