AUSTRALIAN Pharmaceutical Industries (API) shares are expected to cease trading on 22 Mar, if Wesfarmers' bid to acquire the company is backed by shareholders and the Federal Court.
Should the deal go ahead, Wesfarmers will gain access to Australia's fourth largest loyalty program - the Priceline Sister Club, which boasts a membership of 29% of the Australian population.
Details of the expected timetable for the takeover have been released to shareholders and the Australian Securities Exchange (ASX) as part of the scheme booklet (PD 15 Feb).
Shareholders are set to cast their votes on the proposed bid during a virtual meeting on 17 Mar, with the deal to be brought before the Federal Court at 10.15am (AEDT) on 21 Mar for approval, in the event that it is passed.
Should the Court give the green-light for the takeover to proceed, API's directors will decide if they are to pay a Special Dividend and determine entitlements for such a dividend by 7pm (AEDT) on 27 Mar, with any such payment to be made to shareholders on 29 Mar.
Entitlements to 'scheme consideration' will be determined by 7pm (AEDT) on 29 Mar, with Wesfarmers to complete its takeover of the group on 31 Mar.
In a letter to shareholders accompanying the scheme booklet, API Chair, Kenneth Gunderson-Briggs, noted that the the company's directors "have carefully considered the scheme, taking into account API's current position and medium and longer term potential, and believe that the scheme is in the best interests of API shareholders".
The scheme booklet noted that the API share price could fall in the near-term, if the scheme is not implemented, and no superior offer is made for the business.
The above article was sent to subscribers in Pharmacy Daily's issue from 16 Feb 22
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 16 Feb 22
