API takes a 13% stake in Sigma in fresh push to merge with its rival

Australian Pharmaceutical Industries (API) has made a fresh push for a merger with the struggling Sigma Healthcare, revealing it had made a $700 million offer to Sigma’s board in October.
On Friday, API also announced it had acquired a 13 per cent stake in the rival pharmaceutical wholesaler, and reconfirmed the terms of the non-binding indicative proposal made in October, which offers Sigma investors 0.31 API shares and 23¢ cash for each Sigma share they own.
API said the value of the proposal equates to 68.6¢ a Sigma share, which represents a 69 per cent premium to the target’s closing share price on Thursday of 40.5¢.
Sigma’s share price has not recovered from an announcement in July this year that it had been dumped as the preferred wholesaler for Chemist Warehouse. Sydney Morning Herald – Read more…