Sigma Healthcare set to double annual gains on Chemist Warehouse merger optimism

Sigma Healthcare

27/12/2024 24:21

** Shares of Australia's Sigma Healthcare  SIG.AX  set to
more than double their annual gains in 2024
    ** Stock on track for a more than 160% rise in 2024 after a
70% gain in the previous year
    ** Stock has risen steadily over the year on optimism
surrounding its $5.78 bln backdoor merger with private pharmacy
chain Chemist Warehouse
    ** SIG in November received clearance from the competition
watchdog to go ahead with the deal
    ** Chemist Warehouse in late 2023 said it would buy SIG for
stock and A$700 million ($435.47 million) in cash, giving it a
roughly 85% stake in the merged entity and a backdoor to list on
the stock exchange
    ** After the deal got green light, Jefferies analysts said
the merged company will give investors access to an excellent
retail franchise
    ** Investment research firm Morningstar said it views the
deal as strategically sound and transformational for Sigma, as
it creates Australia's largest pharmacy chain backed by
significant distribution infrastructure
    ** Morningstar also forecast the newly formed group to
increase its underlying EBIT by around 13% on average over next
five years

($1 = 1.6075 Australian dollars)

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Sigma Healthcare    https://tmsnrt.rs/41Mglir
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 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))