SIGMA Healthcare (SIG) is reportedly about to close on a deal which would see it reverse list the $3 billion Chemist Warehouse business on the ASX.
Last night Sigma entered a trading halt, with both The Australian and the AFR reporting it was looking to raise around $350 million via Goldman Sachs in order to backdoor list the well-known pharmacy brand.
The ASX released a statement yesterday afternoon confirming the trading halt request from Sigma, pending "it releasing an announcement".
Chemist Warehouse made $3.1 billion in revenue in FY23 and $302 million net profit thanks to its network of almost 550 pharmacies across Australia.
Those figures position Chemist Warehouse as a significantly bigger business than Sigma, leading the AFR to suggest that a reverse listing would likely be followed by a sizeable equity raise, which would be seen as an IPO roadshow.
The situation has been made more probable since Chemist Warehouse awarded Sigma its $2 billion wholesale pharmaceuticals contract in Jun, shifting it from EBOS, and giving Chemist Warehouse a 10.7% stake in Sigma.
It's expected that Sigma and Chemist Warehouse have essentially agreed on terms with the structure to be announced imminently, with Rothschild having provided Chemist Warehouse owners, Jack Gance and Mario Verochhi, with guidance.
Sigma is no stranger to pharmacy, with brands Amcal, Guardian and Discount Drug stores falling under its umbrella. DF
The above article was sent to subscribers in Pharmacy Daily's issue from 07 Dec 23
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 07 Dec 23
