CHEMIST Warehouse Group and Sigma shareholders have greenlit the proposed merger of the two healthcare giants in meetings held in Melbourne yesterday.
More than 97% of Sigma proxies cast backed the merger, easily surpassing the regulatory requirement that at least 75% total number votes cast needed to be in favour for the deal to go ahead.
Meanwhile, 100% of votes cast by Chemist Warehouse shareholders were in favour of the merger.
Chemist Warehouse will own 85.8% of the merged company that will supply 1,200 Sigma-aligned pharmacies and own more than 658 Chemist Warehouse outlets, according to regulatory filings.
Chemist Warehouse founders Jack Gance and Mario Verrocchi will be joined by Chief Commercial Officer, Damien Gance, and Chief People Officer, Danielle Di Pilla, on the board of Sigma Healthcare.
Jack Gance, Sam Gance and Verrocchi will share a stake in Sigma reportedly worth $15 billion, while 104 franchisees will have stakes said to be worth between $5 million and $25 million.
Post-merger, CWG shareholders will hold approximately 85.75% of the merged group, with Sigma shareholders holding around 14.25%.
Sigma will pay the privately held Chemist Warehouse shareholders $700 million in cash as well as stock.
The scheme remains subject to approval of the court at a Supreme Court hearing scheduled for 10.15am (AEDT) on Mon 03 Feb.
Assuming the court gives its approval, the merged entity will recast the ASX when it lists in Feb with an expected market capitalisation of about $30 billion, according to the Australian Financial Review. KB
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