Total
0
Shares
Australian Pharmaceutical Industries (ASX:API) - CEO, Richard Vincent
CEO, Richard Vincent
Source: Priceline
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • A bidding war is underway between Sigma Healthcare (SIG) and Wesfarmers (WES) as they compete to buy Australian Pharmaceutical Industries (API)
  • Priceline owner API previously received a bid from the retail giant for $1.55 per share, while this latest SIG deal offers $1.57 for each API share
  • Under Sigma’s deal, the two healthcare companies would combine forces with API shareholders to walk away with a 48.8 per cent holding in Sigma
  • At this stage API’s board is backing the merger and allowing SIG to carry out due diligence alongside Wesfarmers
  • Shares in API are up 4.1 per cent at $1.53 each, while SIG jumped 0.84 per cent to 60 cents each and WES are trading 0.20 per cent higher at $57.48 at 3:30 pm AEST

A bidding war has broken out over between Sigma Healthcare (SIG) and Wesfarmers (WES) as they both compete to buy Australian Pharmaceutical Industries (API).

The Priceline owner announced today it had given the green light to a takeover bid from Sigma, which trumped its last offer from Wesfarmers.

Sigma has offered to merge the two healthcare businesses by buying 100 per cent of API shares for roughly $1.57 per share.

Specifically, the cash and scrip offer would see API shareholders receive 35 cents cash and 2.05 Sigma shares for every API share they hold.

Under the previous proposal from WES, the Bunnings owner offered to snap up API for approximately $1.55 per share.

Following the superior proposal, API’s Board has recommended it push ahead with Sigma’s offer instead of Wesfarmers.

The healthcare stock will allow SIG to push ahead with due diligence alongside retail giant Wesfarmers.

If Sigma’s deal goes ahead, API shareholders will own a 48.8 per cent stake in the business.

Following the latest takeover offer, shares in Australian Pharmaceutical Industries are up 4.1 per cent at $1.53 each.

Shares in API were up 4.1 per cent at $1.53 each, while SIG jumped 0.84 per cent to 60 cents each and WES were trading 0.20 per cent higher at $57.48 at 3:30 pm AEST.

API by the numbers
More From The Market Herald
Aussie Broadband (ASX:ABB) - Managing Director, Phillip Britt

" Aussie Broadband (ASX:ABB) confirms takeover talks with Over The Wire (ASX:OTW)

In response to an article by The Australian, Aussie Broadband (ABB) has confirmed it is in discussions with Over The Wire (OTW) regarding
Cashrewards (ASX:CRW) - CEO, Bernard Wilson

" ANZ’s (ASZ:ANZ) investment arm to buy Cashrewards (ASX:CRW)

ANZ’s (ANZ) investment arm will aim to buy all of the share in fellow ASX-lister Cashrewards (CRW).
Salt Lake Potash (ASX:SO4) - CEO, Tony Swiericzuk

" Salt Lake Potash (ASX:SO4) enters administration

Salt Lake Potash (SO4) has gone bust and entered voluntary administration.
Redcape Hotel Group (ASX:RDC) -

" Redcape Hotel Group (ASX:RDC) announces share buyback results

Redcape Hotel Group (RDC) has announced the results from the share buyback it is carrying out ahead of the company’s planned delisting.