Sigma Healthcare rejects API merger offer

Company News

by Rachael Jones

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.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.