Pharmacy Daily | Aspen checking out Sigma

TROUBLED Pharmaceutical manufacturer Sigma has opened its books to its South African suitor Aspen Pharmacare (PD 24 May), granting it due diligence for the next four weeks. Sigma has promised not to accept any rival takeover bid to Aspen’s 60c per share ($707 million) offer, and is generally thought to be the first step towards Aspen formalising its bid and Sigma accepting it. Prior to granting due diligence no other rival bids had been tendered to Sigma. The due diligence agreement also means that Sigma will not be able to enter into contracts regarding asset sales - but will continue its previously announced asset sale program. The bid is subject to a confidentiality agreement, and Sigma is telling shareholders not to take any action at this stage because the due diligence may not result in a formal proposal or recommendation from the board. If the bid succeeds Aspen will become one of Australia’s largest suppliers of prescription drugs.

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