Johannesburg, April 20 - South Africa's food and pharmaceuticals group Tiger Brands said on Friday it would divest its drug and hospital interests, sending its shares surging.
Tiger Brands, South Africa's biggest consumer-branded products group, said in a statement it had appointed investment bank UBS South Africa to evaluate options, including a potential sale or unbundling and separate listing of the interests.
The shares jumped 7.4 percent to 201 rand by 1355 GMT, outperforming a 1.1 percent rise in the blue chip Top-40 index.
The firm said it would exit the pharmaceutical and hospital interests of subsidiary Adcock Ingram Holdings Ltd, but it would retain consumer healthcare activities, including personal care and baby care.
The decision to divest was made so the company can better focus on its core business in fast-moving consumer goods (FMCG) following a strategic review.
"The characteristics and growth prospects of a healthcare business differ from those of a focused FMCG company. Consequently, the board believes that shareholder interests would be best served through a separation of the two businesses," the statement said.
Adcock Ingram has had a good record of profitable growth, with turnover and operating income growing at a compound rate of 16-17 percent a year for the past three years, it added.