Ownership matters in favor of Chemist Warehouse-Sigma Healthcare deal worth $5.8 billion Reuters

(Reuters) – Proxy advisory firm Ownership Matters said on Monday it is recommending that Sigma Healthcare shareholders vote in favor of Chemist Warehouse’s reverse takeover of the pharmaceutical company, citing significant shareholder value.

Sigma Healthcare will hold a shareholder meeting on January 29 to seek approval for the deal, which will create a $5.8 billion entity.

As part of the deal, which was announced in December 2023, Chemist Warehouse will buy Sigma for shares and A$700 million in cash, giving it an approximately 85% stake in the combined entity and a backdoor entry to an Australian stock market listing.

In early November, Australia’s competition regulator approved the deal after the companies made concessions to ease competition concerns.

Sigma Healthcare shares are up more than 300% since the deal was announced. It was last down 1.2% at A$2.965.