Ownership Matters in favour of Chemist Warehouse-Sigma Healthcare $5.8 bln deal
13/01/2025 02:43
Jan 13 (Reuters) - Proxy advisory firm Ownership Matters
said on Monday it recommends that shareholders of Sigma
Healthcare SIG.AX vote in favour of Chemist Warehouse's
reverse takeover of the pharmaceutical company, citing
significant shareholder value.
Sigma Healthcare will conduct a shareholder meeting on Jan.
29 to seek approval for the deal, which will create a $5.8
billion entity.
As part of the deal, which was announced in December 2023,
Chemist Warehouse will buy Sigma for stock and A$700 million in
cash, giving it a roughly 85% stake in the merged entity and a
back door to list on the Australian stock exchange.
In early November, the Australian competition regulator
cleared the deal after the companies made concessions to
alleviate competition concerns.
Shares of Sigma Healthcare have surged more than 300% since
the announcement of the deal. It was last down 1.2% at A$2.965.
(Reporting by John Biju in Bengaluru; Editing by Sonia Cheema)
((John.Biju@thomsonreuters.com;))