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SIG - Sigma Healthcare

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Sigma Healthcare Limited (ASX: SIG) – Request for trading halt

Pursuant to Listing Rule 17.1, Sigma Healthcare Limited (ACN 088 417 403) (Sigma) requests the immediate implementation of a trading halt in the ordinary shares of Sigma. For the purposes of Listing Rule 17.1, Sigma provides the following information to ASX:
1. The trading halt is requested pending an announcement relating to a potential material transaction and is required to ensure Sigma shares are not trading on a misinformed basis.
2. Sigma requests that the trading halt continue until the earlier of commencement of trading on 8 December 2023 and when Sigma makes the intended announcement.
3. Sigma is not aware of any reason why the trading halt should not be granted, or of any other information necessary to inform the market about the trading halt.
Please contact me if there are any queries regarding this request.

Yours sincerely Kara McGowan General Counsel and Company Secretary Sigma Healthcare Limited

i hold SIG
 
Chemist Warehouse will take control of Sigma Healthcare in a reverse listing that will bring the pharmaceutical retailer, which is controlled by the billionaire Gance and Verrocchi families, to the ASX for the first time.

The key components have been agreed upon and are expected to be outlined as soon as Friday. A $350 million capital raising was being handled by Goldman Sachs.
.
now 77c ... and has done well vs the index of late
Screenshot_20231206-212921_CommSec.jpg
 
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hmmmm

i guess the devil will be itnthe details , WES gobbled up my preferred play API

am in a profit with SIG ( at least so far ) jumping ship is a profitable option , am not so thrilled at buying another retail chain
 
Sigma Healthcare Limited (ASX: SIG)

– Request for voluntary suspension Pursuant to Listing Rule 17.2, Sigma Healthcare Limited (ACN 088 417 403) (Sigma) requests an immediate voluntary suspension in the ordinary shares of Sigma.

For the purposes of Listing Rule 17.2, Sigma provides the following information to ASX:
1. Sigma requested a trading halt in respect of its ordinary shares on 6 December 2023 pending an announcement relating to a potential material transaction (Material Transaction).
Whilst discussions are ongoing, Sigma is not presently in a position to make an announcement to the market with respect to the Material Transaction.
Accordingly, Sigma now requests that trading in its shares be suspended to ensure the market is not trading on an uninformed basis while those discussions are ongoing.
2. Sigma expects the voluntary suspension to remain in place until the earlier of Sigma releasing an announcement regarding the Material Transaction, or until the commencement of trading on 11 December 2023.
3. Sigma is not aware of any reason why the request for voluntary suspension should not be granted, or of any other information necessary to inform the market about the voluntary suspension.
Please contact me if there are any queries regarding this request.
Yours sincerely Kara McGowan

General Counsel and Company Secretary Sigma Healthcare Limited

i hold SIG
 
Transformational Merger of Sigma Healthcare Limited and Chemist Warehouse Group and Equity Raising
Sigma Healthcare Limited (Sigma) is pleased to announce it has entered into a Merger Implementation Agreement (MIA) to merge with CW Group Holdings Limited (CWG or Chemist Warehouse Group) to create a leading healthcare wholesaler, distributor and retail pharmacy franchisor (Proposed Merger).
In addition, Sigma is undertaking a fully underwritten pro-rata accelerated non-renounceable entitlement offer to raise gross proceeds of approximately $400 million (Entitlement Offer) to provide the increased working capital required to implement the Chemist Warehouse supply contract (signed 31 August 2023) commencing on 1 July 2024 and progress business growth initiatives (Equity Raising).
In the event the Proposed Merger proceeds to completion, and to the extent the proceeds have not been applied to fund working capital needs and new business initiatives discussed in the Investor

Presentation – some of the net proceeds from the Entitlement Offer may instead be used to partially fund the cash consideration payable under the Proposed Merger.
Highlights
Transformational merger between Sigma and CWG to create a leading healthcare wholesaler, distributor and retail pharmacy franchisor
• CWG is a leading Australian retail pharmacy franchisor, supporting a multi-national Retail Network of ~600 stores, mainly operating under the highly recognised Chemist Warehouse brand
• Sigma is a major Australian pharmaceutical wholesaler and pharmacy franchisor
• Proposed Merger to be effected by Sigma acquiring CWG via a scheme of arrangement (Scheme) in exchange for Sigma shares and $700 million cash consideration1
• CWG shareholders to hold 85.75% and Sigma shareholders to hold 14.25% of the merged group (MergeCo) upon completion of the Proposed Merger2

and a way longer release


i hold SIG

hasn't tempted me to reach for the wallet so far

should i hold or sell ( crystallize the profits ) i wonder

will be watching to see if the ACCC speaks up here
 
galumay said:
Because of the Pharmacy Guild, if the ACCC doesn't stop this merger what is the point of their existence?
Click to expand...
yes

between WES ( and the API take-over ) and the CW grab of SIG must be stressing for small pharmacy chains ( and the few independents left )
 
galumay said:
Dont usually support anything the Pharmacy Guild says, but on this I think they have a point, if the ACCC doesn't stop this merger what is the point of their existence?
Click to expand...

What the ACCC approves the ACCC approves. A number of pharmacies operate under a group umbrella now. The one near me is a smaller outlet but part of a group which operates pharmacies in Dubbo, Armadale as well as other locations both in Canberra and Interstate. Heck, it could be argued Soul Pattinson was the initiator of the model.
 
"Chemist Warehouse is a high volume but low-margin business. Its shelves are stacked high with cheap perfumes, vitamins and make-up, while the dispensary sits in the back of the shop. It operates an opposite model to most pharmacies: it generated 70 per cent of its sales from front-of-shop goods, with the balance coming from dispensing drugs"
.
Much has been made of the model, and particularly the way Chemist Warehouse has been able to skirt the strict competition laws in the pharmacy sector, which have generally made it difficult for one group to control a large number of outlets.

But what Gance emphasised on Monday was simplification.
“Unfortunately, what we do is fairly mundane … We are a franchisor and a wholesaler. We supply the consumer goods you find in the non dispensary part of the Chemist Warehouse [store]. We provide franchise services to our franchise pharmacies. We give them access to our IP, and we sell them stuff. That’s the grand reveal. That’s what you see as we let you peel back the curtain.”
 
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Belli said:
What the ACCC approves the ACCC approves. A number of pharmacies operate under a group umbrella now. The one near me is a smaller outlet but part of a group which operates pharmacies in Dubbo, Armadale as well as other locations both in Canberra and Interstate. Heck, it could be argued Soul Pattinson was the initiator of the model.
Click to expand...
yes but SIG/CW takes it further that they are also a major distributor across Australia ( to other smaller chains )

the WES take-over was bad enough ( i held API and still hold WES )

but over the years we have seen 'the two whale policy ' play between WOW and COL

that could easily happen to essential medications

Upon completion of the Proposed Merger, CWG shareholders will own 85.75% of MergeCo, and Sigma shareholders will hold the remaining 14.25%12

and my other dislike is this is a bad deal for SIG shareholder almost being diluted by half to end up with 14.25% of the merged company , and then you get international exposure via CW ( and possible reduction it franking credits )
 
Interesting. I wasn't aware of the ownership requirement.

"Market share concentration of the Pharmacies industry in Australia​

Market share concentration for the Pharmacies industry in Australia is low, which means the top four companies generate less than 40% of industry revenue.

The average concentration in the Retail Trade sector in Australia is 38%.

Trends and Insights​

Ownership rules are influencing market share concentration​

  • Pharmacies are highly fragmented, as state and territory legislations restrict pharmacy ownership. Only qualified pharmacists can own pharmacies, not incorporated entities. Even pharmacists can only own a limited number of pharmacies. This means individual operators dominate the Pharmacies industry."
 
It seems like a clever move to me, WES wont be happy IMO.
For Chemist Warehouse to float with an IPO, in this $hit monetary climate, would be a disaster IMO mums and dads ain't buying.
To merge with Sigma who are already listed means a bigger company, with a smaller capital raising doesn't it?
In W.A chemist warehouse is the Aldi of pharmacies, so very strong sales record.
Win/ Win.
IDNH
(short for I do not hold) :xyxthumbs
 
sptrawler said:
It seems like a clever move to me, WES wont be happy IMO.
For Chemist Warehouse to float with an IPO, in this $hit monetary climate, would be a disaster IMO mums and dads ain't buying.
To merge with Sigma who are already listed means a bigger company, with a smaller capital raising doesn't it?
In W.A chemist warehouse is the Aldi of pharmacies, so very strong sales record.
Win/ Win.
IDNH
(short for I do not hold) :xyxthumbs
Click to expand...
According to the AFR funds and families here and in the USA will be piling in to Sigma/Chemist Warehouse.

It will be one of the biggest retailers about this neck of the woods.

gg
 

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