Africa’s biggest drug maker, Aspen Pharmacare, has been confirmed as the surprise bidder for Sigma Pharmaceuticals Ltd
(ASX:SIP).
The Age reports that Aspen has made a $707 million takeover offer for the troubled Sigma, which if successful, would make the company Australia’s biggest prescription drug supplier.
Aspen has informed the Johannesburg Stock Exchange that it has approached Sigma’s board with an offer priced at 60 cents per share, under a scheme of arrangement.
But Aspen has told its investors that the offer is subject to several conditions, including an investigation of Sigma’s accounts, regulatory approvals and the unanimous recommendation of the Sigma board.
Sigma says its board it considering the proposal and recommends that shareholders take no action at this stage.
The takeover would give Aspen a 12% share of the local market.
Last week, Sigma announced that chairman Dr John Stocker and non-executive director Doug Curlewis would retire at the company’s annual general meeting on June 21.
The resignations follow those of the CEO and CFO early in the year after Sigma posted a $389 million full year loss.
For the 12 months to January 30, 2010, Sigma Pharmaceuticals paid a total of $0.03 a share in dividends to shareholders.
