Sigma Pharmaceuticals (SIP) today proposed a takeover bid for Australian Pharmaceutical Industries (API). Sigma is already the biggest pharmaceutical wholesaler and due to its recent merger with Arrow Pharmaceuticals (one of the largest generic pharmaceutical drug makers/distributors in the country) is in a perfect position to succeed. API own major brands like Priceline, Priceline Pharmacy, Chemworld, Soul Pattinson Pharmacy and not to mention they are the 2nd largest pharmaceutical wholesaler in Australia.
Personally think its a monster move...lets see what happens. Any thoughts people? Anyone holding either stock?
Not sure how accurate everything below is but definetely a takeover bid:
Sigma Offers A$566 Million for Australian Pharma (Update2)
By Vesna Poljak
Oct. 6 (Bloomberg) -- Sigma Pharmaceuticals Ltd., Australia's biggest contract maker of drugs, offered to buy Australian Pharmaceutical Industries Ltd., the nation's largest drugs wholesaler, for A$566 million ($422 million).
Sigma may bid A$2.20 a share for Australian Pharma stock, the Melbourne-based company said in a statement to today, without making a formal proposal.
Buying Australian Pharma would give Sigma an extra 14 Australian distribution centers serving about 2,500 customers, pharmacy brands including Priceline, Soul Pattinson and Chemworld, and control of about 215 drugstores in New Zealand.
``Merging the two companies would create significant shareholder value,'' Sigma said, citing ``strategic and cost synergies.''
Shares of Australian Pharma, which traded above the offer price at A$2.36 in Sydney today, have gained 45 percent since a record low of A$1.63 on Aug. 22, when they resumed following a six-week suspension because the company couldn't account for a A$17.2 million hole in its accounts.
Sigma approached Australian Pharma's board, offering cash or stock, it said in the statement. It wants to review Australian Pharma's accounts.