The Board of Sigma Healthcare (ASX:SIG) has concluded that the Australian Pharmaceutical Industries (ASX:API) proposal is not in the best interests of Sigma shareholders.
On 14 December 2018, Sigma (ASX:SIG) received a non-binding indicative proposal from API to acquire all the shares in Sigma, via a scheme of arrangement, for 0.31 API shares plus $0.23 cents in cash for each Sigma share held.
Since January this year, API and Sigma have engaged in due diligence.
The Sigma Board believes that significant shareholder value could be realised on a standalone basis through the implementation of cost saving initiatives over the next two years.
Shares in Sigma Healthcare (ASX:SIG) are trading 1.64 per cent lower to 60 cents.