Woolworths (ASX:WOW) unveils $872m surprise bid for Priceline owner

Company News

by Melissa Darmawan

Supermarket giant Woolworths (ASX:WOW) has emerged as a rival buyer for Priceline owner API (ASX:API) with a $870 million offer, a move that would see one Woolies spread its wings into the healthcare space. The deal is to acquire 100 per cent of the shares in API at a price of $1.75 a share valuing the business at $872 million.

The bid is ahead of the Wesfarmers’ (ASX:WES) offer of $1.55 a share which was proposed in July that triggered a bidding tug of war with Sigma Healthcare (ASX:SIG), who are behind the Amcal and Guardian brands after its $773.5 million bid that was withdrawn in early November.

The API board recommended shareholders vote in favour of Wesfarmers to acquire the business last month, however with the surprise offer by Woolworths, tensions are mounting on who will be the new owner of API.

Shares in Woolworths (ASX:WOW) is trading 0.2 per cent lower at $39.75, while shares in Wesfarmers (ASX:WES) is up 0.7 per cent at $57.42, though shares in Australian Pharmaceutical Industries (ASX:API) are surging 16.7 per cent at $1.74.
 

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.