Australia's Sigma shares rise 3% in first trading after Chemist Warehouse mega-merger (updated)
13/02/2025 24:17
(Updates share price in first paragraph and adds detail from
third paragraph)
By Scott Murdoch
SYDNEY, Feb 13 (Reuters) - Shares of Australia's Sigma
Healthcare SIG.AX gained more than 3% in early trading on
Thursday in the firm's first session since it finalised a merger
with Chemist Warehouse to create a A$31 billion ($19.47 billion)
pharmacy and retail giant.
The value of the merger was A$8.8 billion when the deal was
announced in December 2023, but Sigma shares have increased more
than three-fold.
The stock was up 0.2% on Thursday when trading began, but
gained steadily to last trade 3.4% higher at A$2.86.
Almost 100% of Sigma shareholders approved the deal that
involved Sigma paying A$700 million plus stock to Chemist
Warehouse's founders for the business. It took more than a year
to gain regulatory approval.
Former Chemist Warehouse shareholders now 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 control 14.25% of the
merged company, the deal's documents showed.
($1 = 1.5918 Australian dollars)
(Reporting by Scott Murdoch; Editing by Chris Reese and Jamie
Freed)
((Scott.Murdoch@thomsonreuters.com;))