Australian pharmacy operator Sigma board rejects API’s $514.5m takeover bid

Bondi beach, Australia. Photo by Alex King on Unsplash

Australian pharmacy operator Sigma Healthcare Ltd‘s board on Wednesday rejected a A$727 million ($514.5 million) takeover bid from Australian Pharmaceutical Industries Ltd (API), saying it was not in the best interests of shareholders.

Having recently completed a detailed assessment of the proposal, Sigma‘s board said in a statement that there was scope for standalone value to shareholders through the cost-cutting measures it had outlined earlier.

“The current API proposal does not reflect the long-term prospects and value inherent in Sigma having regard to the reset cost base of the business and our own growth agenda,” Sigma Chairman Brian Jamieson said.

API owns nearly 13 percent of Sigma. On Wednesday, it said it would review its stake.

“It is clear that API’s non-binding indicative offer to pursue a merger of API and Sigma is unable to be taken forward,” API said.

API had offered to buy the drug distributor in December 2018, with the aim of consolidation in the face of increased competitive and regulatory pressure.

Sigma had engaged in a limited form of due diligence with API since January.

Sigma‘s shares dropped about 11 percent while API shed as much as 2.8 percent, amid a weaker broader market.

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Reuters

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.