DON’T MISS THE OPPORTUNITY
Back in November 2013, GlaxoSmithKline (GSK) sold a third of its holdings in Aspen, some 28.2m shares at R250 each. GSK has now just sold half of the remaining shares it holds, another 28.2m, this time at R372. While this was a fairly deep discount to the R406.50 that Aspen had been trading at the day before, t he announcement and t he market reaction surprised me. The Aspen shares were sold off some 6% cheaper. We saw the exact same response when GSK sold its stake in 2013 and Aspen rebounded almost immediately, and I expect exactly the same response this time around. The selling pressure is l i kely to be people who sold at R372 making a quick prof it, but t here is also a lot of noise about why GSK is exiting Aspen. The short answer is simple, Aspen i s not c or e t o GSK a nd it i s s el l i ng at si gnif i cant prof it . Further, GSK will eventually sel l t he remaining shares t hat it holds in Aspen, and likely the market will sharply sell off Aspen again when it does, so use this as an opportunity to get some Aspen at a discount.