Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Australian Pharmaceutical Industries / Event-Driven

Australian Pharmaceutical Industries (API AU)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a>'s Scheme Booklet is now <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02486907-3A587316?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">out</a>. The Scheme Meeting will be held on the 17 March with possible implementation on the 31 March.  </li>
<li>The Independent Expert has concluded this US$600mn Offer is fair and reasonable and in the best interest of Senex shareholders.</li>
<li>The Offer price is full. And trading very tight to terms.</li>
</ul>



Australian Pharmaceutical Industries (API AU)'s Scheme Booklet is now out. The Scheme Meeting will be held on the 17 March with possible implementation on the 31 March.  
The Independent Expert has concluded this US$600mn Offer is fair and reasonable and in the best interest of Senex shareholders.
The Offer price is full. And trading very tight to terms.


Aussie Pharma (API AU): Scheme Booklet Out. Meeting On The 17 March

<ul>
<li>
<a href="https://www.smartkarma.com/entities/woolworths-ltd" target="_blank" data-smartkarma-citation="entities:500:1" rel="noopener">Woolworths Ltd (WOW AU)</a>'s surprise takeover Offer for <a href="https://www.smartkarma.com/entities/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a> last month is surpassed by its surprise decision to walk away.</li>
<li>This leaves <a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a> in the driving seat - provided the ACCC is satisfied competition is not impeded.</li>
<li>The cash consideration of $1.55 under Wesfarmers' Offer will be reduced by any permitted dividend. A final fully franked dividend of A$0.02/share has been paid.</li>
</ul>



Woolworths Ltd (WOW AU)'s surprise takeover Offer for Australian Pharmaceutical Industries (API AU) last month is surpassed by its surprise decision to walk away.
This leaves Wesfarmers Ltd (WES AU) in the driving seat - provided the ACCC is satisfied competition is not impeded.
The cash consideration of $1.55 under Wesfarmers' Offer will be reduced by any permitted dividend. A final fully franked dividend of A$0.02/share has been paid.


Aussie Pharma: Path Cleared For Wesfarmers As Woolies Walks.

<ul>
<li>Grocer giant <a href="https://www.smartkarma.com/entities/woolworths-ltd" target="_blank" data-smartkarma-citation="entities:500:1" rel="noopener">Woolworths Ltd (WOW AU)</a> has made a non-binding Offer of <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02461347-3A582711?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.75/share</a> for <a href="https://www.smartkarma.com/entities/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a>, ~12.9% above <a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a>'s firm Offer of $1.55/share.</li>
<li>API has granted confirmatory due diligence to facilitate a binding offer. A firm Offer would be subject to ACCC approval.</li>
<li>Wesfarmers SID includes a matching right in favour of Wesfarmers which is exercisable before API enters into any binding agreement in respect of a Competing Proposal.</li>
</ul>


Grocer giant Woolworths Ltd (WOW AU) has made a non-binding Offer of A$1.75/share for Australian Pharmaceutical Industries (API AU), ~12.9% above Wesfarmers Ltd (WES AU)'s firm Offer of $1.55/share.
API has granted confirmatory due diligence to facilitate a binding offer. A firm Offer would be subject to ACCC approval.
Wesfarmers SID includes a matching right in favour of Wesfarmers which is exercisable before API enters into any binding agreement in respect of a Competing Proposal.


Woolies Trumps Wesfarmers' Offer for Aussie Pharma

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a> announced a non-binding indicative offer from <a href="https://www.smartkarma.com/entities/woolworths-ltd" target="_blank" data-smartkarma-citation="entities:500:1" rel="noopener">Woolworths Ltd (WOW AU)</a> for A$1.75 per share, a 12.9% premium to <a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a>’ offer of A$1.55. </li>
<li>Woolworths notes that there is the potential to improve the offer price with the benefit of due diligence, which has been granted. </li>
<li>Wesfarmers has matching rights. We think that the presence of two deep-pocketed suitors, suggests at least another round of bidding.  </li>
</ul>



Australian Pharmaceutical Industries (API AU) announced a non-binding indicative offer from Woolworths Ltd (WOW AU) for A$1.75 per share, a 12.9% premium to Wesfarmers Ltd (WES AU)’ offer of A$1.55. 
Woolworths notes that there is the potential to improve the offer price with the benefit of due diligence, which has been granted. 
Wesfarmers has matching rights. We think that the presence of two deep-pocketed suitors, suggests at least another round of bidding.  


Woolworths' API Bid Likely to Kick off a Bidding War with Wesfarmers

<a href="https://www.smartkarma.com/entities/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a> is a vertically integrated wholesaler, franchise owner and retailer. API has received a binding proposal and entered a scheme implementation deed (SID) with <a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a>. The offer price of A$1.55 per share (unchanged from the 16 September revised indicative offer) is a 35.4% premium to the unaffected price of A$1.145 (9 July).In its full-year results announced on 28 October, API declared a fully franked final dividend of A$0.02 per share to be paid out on 15 December. API will also pay a fully franked special dividend of A$0.03 per share as part of the scheme. The offer price will be reduced by these dividend payouts. As a reminder, API was subject to a contested bid between Wesfarmers and <a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a>. On 27 September, API revealed a non-binding indicative offer from Sigma comprising A$0.35 cash and 2.05 Sigma shares per API share. However, on 7 October, Wesfarmers exercised a call option over Washington H Soul Pattinson’s 19.3% stake in API. Subsequently, Sigma withdrew its offer on 5 November “after further assessment and in the context of the competitive bid process with its changing transaction and economic considerations.”The scheme is conditional on API shareholder approval and ACCC approval. The scheme meeting and completion are targeted for the first quarter of 2022.  <div class="content-highlight">We think that Wesfarmers’ offer is reasonable in the context of historical multiples and share prices. Wesfarmers aims to make API the foundation of its new Healthcare division, which will be used as the springboard to grow its presence in the health, wealth and beauty sectors. At the last close price of A$1.54, the gross spread is 0.6% and the annualised spread to the implementation date (end of 1Q) is 1.6%.</div>

Australian Pharmaceutical Industries (API AU) is a vertically integrated wholesaler, franchise owner and retailer. API has received a binding proposal and entered a scheme implementation deed (SID) with Wesfarmers Ltd (WES AU). The offer price of A$1.55 per share (unchanged from the 16 September revised indicative offer) is a 35.4% premium to the unaffected price of A$1.145 (9 July).In its full-year results announced on 28 October, API declared a fully franked final dividend of A$0.02 per share to be paid out on 15 December. API will also pay a fully franked special dividend of A$0.03 per share as part of the scheme. The offer price will be reduced by these dividend payouts. As a reminder, API was subject to a contested bid between Wesfarmers and Sigma Healthcare (SIG AU). On 27 September, API revealed a non-binding indicative offer from Sigma comprising A$0.35 cash and 2.05 Sigma shares per API share. However, on 7 October, Wesfarmers exercised a call option over Washington H Soul Pattinson’s 19.3% stake in API. Subsequently, Sigma withdrew its offer on 5 November “after further assessment and in the context of the competitive bid process with its changing transaction and economic considerations.”The scheme is conditional on API shareholder approval and ACCC approval. The scheme meeting and completion are targeted for the first quarter of 2022.  We think that Wesfarmers’ offer is reasonable in the context of historical multiples and share prices. Wesfarmers aims to make API the foundation of its new Healthcare division, which will be used as the springboard to grow its presence in the health, wealth and beauty sectors. At the last close price of A$1.54, the gross spread is 0.6% and the annualised spread to the implementation date (end of 1Q) is 1.6%.

Australia

Sigma Healthcare Limited wholesales and distributes pharmaceutical products. The Company offers prescription, over-the-counter, and generic drugs. Sigma Healthcare serves customers in Australia.

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Sigma Healthcare (SIG AU)

Aussie Pharma (API AU): Scheme Booklet Out. Meeting On The 17 March

Trading super at a gross/annualised spread of 0.3%/2.8%. However, if you are a low-rate payer, who can reclaim the franking credits, there's may...

David Blennerhassett

Aussie Pharma: Path Cleared For Wesfarmers As Woolies Walks.

Trading at a gross/annualised spread of 1.0%/4.6%. If you are a zero-rate taxpayer, or a low-rate payer, who can reclaim the franking credits,...

David Blennerhassett

Woolies Trumps Wesfarmers' Offer for Aussie Pharma

There's probably a further 10-15% here with two large players in the mix. I think we could see a $2/handle. I'd buy on any weakness.

David Blennerhassett

Woolworths' API Bid Likely to Kick off a Bidding War with Wesfarmers

API announced an offer from Woolworths for A$1.75 per share, a 12.9% premium to Wesfarmers offer of A$1.55. The presence of two deep-pocketed...

Arun George

API Enters a SID with Wesfarmers

API has entered a SID with Wesfarmers at an offer price of A$1.55 cash per share. We think that Wesfarmers’ offer is reasonable in the context of...

Arun George

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