Australia's Sigma shareholders approve $5.5 billion Chemist Warehouse merger (updated)
29/01/2025 03:43
(Adds vote and deal detail from second paragraph)
By Scott Murdoch
SYDNEY, Jan 29 (Reuters) - Australia's Sigma Healthcare
SIG.AX shareholders approved in a vote on Wednesday a merger
with Chemist Warehouse to create an A$8.8 billion ($5.50
billion) pharmacy and retailing giant.
More than 99% of proxy shareholders voted in favour of the
deal, according to a company presentation made at the meeting in
Melbourne. The final result will be made public later Wednesday.
The outcome of the vote easily surpasses the regulatory
requirement that at least 75% total number votes cast need to be
in favour for the deal to proceed.
The decision ends more than a year of deliberations between
Sigma, Chemist Warehouse and regulators, which had raised
antitrust concerns before giving the green light for the
transaction in early November.
Sigma will pay the privately held Chemist Warehouse
shareholders A$700 million in cash as well as stock to
facilitate what would effectively be a backdoor listing of the
company on the Australian Securities Exchange (ASX).
Chemist Warehouse had long been touted as a candidate for an
initial public offering (IPO) but the Sigma transaction allowed
it to skirt that process at a time when financial markets were
volatile.
Chemist Warehouse will own 85.8% of the merged company that
will supply 1,200 Sigma-aligned pharmacies and own more than 658
Chemist Warehouse outlets, according to regulatory filings.
Chemist Warehouse's founders will control 14.25% of the merged
company, the deal's documents showed.
Chemist Warehouse is a pharmacy and retail chain in
Australia known for cheap prices, large stores and major
advertising campaigns.
The chain on Tuesday said its first half 2025 sales reached
A$5.15 billion, up 13% on the same time last year. Its earnings
before interest and tax (EBIT) rose 35% to A$438 million in the
half, filings showed.
(Reporting by Scott Murdoch; Editing by Muralikumar
Anantharaman and Shri Navaratnam)
((Scott.Murdoch@thomsonreuters.com;))