- Australian Pharmaceutical Industries (API) has sold 137 million Sigma Healthcare shares, saying the partnership is no longer attractive for the company
- Last year, API bought a 13 per cent stake in Sigma and launched a $726 million cash-and-script takeover bid for the life science and technology company
- However, Sigma claimed this was an underevaluation and did not properly reflect the business and its growth plans
- API decided to sell its shares because the fundamentals that made the merger so attractive had significantly declined
- API’s share price is up a slight 0.58 per cent with shares trading for $1.30 each
Australian Pharmaceutical Industries (API) has sold more than 137 million shares in Sigma Healthcare, claiming the once-proposed merger is no longer attractive for the company.
Last year, API bought a 13 per cent stake in Sigma and launched a $726 million cash-and-script takeover bid for the company which owns the Amcal and Guardian pharmacies,
Sigma then rejected this bid claiming it was too cheap and did not properly reflect the business and its growth plans.
API’s Chairman Mark Smith said the company decided to sell its 137,264,592 Sigma shares because the strategic and commercial fundamentals that made the merger so compelling had significantly diminished.
“Selling our Sigma shares will allow API to further accelerate its focus on its portfolio of businesses and our board remains confident that our combination of our Pharmacy Distribution, Priceline Pharmacy, Clear Skincare and Consumer Brands businesses will deliver sustained shareholder value in the coming years,” he said.
API is the parent company of Priceline Pharmacy, Soul Pattinson Chemist and Pharmacist Advice, and is one of Australia’s leading health and beauty companies with more than 590 stores across Australia.
Sigma Healthcare has more than 1200 branded and independent stores with the likes of Amcal, Chemist King, Discount Drug Stores, Guardian and PharmaSave.
API’s share price is up a slight 0.58 per cent in afternoon trade with shares trading for $1.30 each at 1:11 pm AEDT.