(Reuters) – Australian Pharmaceutical Industries on Monday received a non-binding proposal from Sigma Healthcare valuing it at A$773.5 million ($561.4 million), rivalling an offer from retail conglomerate Wesfarmers.<\/p>\n
API earlier in the month granted due diligence to Wesfarmers after the retail conglomerate sweetened its indicative buyout bid to value the pharmacy chain at A$763.6 million.<\/p>\n
Under Sigma\u2019s cash-and-stock proposal, API shareholders would receive an implied A$1.57 per share, a 7% premium to its last close and slightly above Wesfarmers\u2019 proposed bid of A$1.55 apiece.<\/p>\n
API said Sigma\u2019s proposal was in the best interests of its shareholders and was \u201creasonably capable of being valued and completed\u201d.<\/p>\n
It allowed Sigma to undertake due diligence to make a binding offer.<\/p>\n
As per the proposal, API shareholders also would own about 48.8% of the combined entity.<\/p>\n
($1 = 1.3778 Australian dollars)<\/p>\n