Financial News, Analysis and Data, FNArena

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Equity Bottom-Up

<ul><li>Sigma Healthcare's FY26 result underscored the value of last year's merger with the Chemist Warehouse pharmacy chain.</li><li> Sigma Healthcare&rsquo;s FY26 largely in line with consensus Slowing sales and cost growth a concern, albeit FY27 has started well Local and international store rollout continues Chemist Warehouse founders looking to sell some equity</li></ul>

Sigma Healthcare's FY26 result underscored the value of last year's merger with the Chemist Warehouse pharmacy chain. Sigma Healthcare&rsquo;s FY26 largely in line with consensus Slowing sales and cost growth a concern, albeit FY27 has started well Local and international store rollout continues Chemist Warehouse founders looking to sell some equity

Chemist Warehouse A Winner For Sigma Healthcare

<ul><li>Sigma Healthcare's FY26 result underscored the value of last year's merger with the Chemist Warehouse pharmacy chain.</li><li> Sigma Healthcare&rsquo;s FY26 largely in line with consensus Slowing sales and cost growth a concern, albeit FY27 has started well Local and international store rollout continues Chemist Warehouse?</li><li>founders looking to sell some equity</li></ul>

Sigma Healthcare's FY26 result underscored the value of last year's merger with the Chemist Warehouse pharmacy chain. Sigma Healthcare&rsquo;s FY26 largely in line with consensus Slowing sales and cost growth a concern, albeit FY27 has started well Local and international store rollout continues Chemist Warehouse?founders looking to sell some equity

<ul><li>In a turbulent market, Sigma Healthcare could prove a defensive alternative driven by Chemist Warehouse&rsquo;s value offering and the company&rsquo;s international growth.</li><li> Sigma Healthcare's solid first half overshadowed by war in the Middle East Chemist Warehouse a defensive retail business Store numbers growing in New Zealand, Ireland and the UAE Analysts are net positive in the current environment</li></ul>

In a turbulent market, Sigma Healthcare could prove a defensive alternative driven by Chemist Warehouse&rsquo;s value offering and the company&rsquo;s international growth. Sigma Healthcare's solid first half overshadowed by war in the Middle East Chemist Warehouse a defensive retail business Store numbers growing in New Zealand, Ireland and the UAE Analysts are net positive in the current environment

The Defensive Proposition Of Sigma Healthcare

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Cuscaden Peak, the sponsor of <strong><a href="https://www.smartkarma.com/entities/paragon-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">Paragon REIT (PGNREIT SP)</a></strong> and 61.5% shareholder, has offered S$0.98/unit, in cash; or S$1.003/unit, a 7% premium to NAV, when including FY24's S$0.0233/unit cash distribution.</li>
<li>The Offer is by way of a Scheme. The Offer price has NOT been declared final. A switch option into a voluntary Offer is afforded should a competing Offer emerge.</li>
<li>Looks pretty clean. Assuming mid-late May payment, pay up to S$0.97/share for a 4%/15% gross/annualised spread. It <em>may</em> trade tighter given the early distribution payment.</li>
</ul>


Cuscaden Peak, the sponsor of Paragon REIT (PGNREIT SP) and 61.5% shareholder, has offered S$0.98/unit, in cash; or S$1.003/unit, a 7% premium to NAV, when including FY24's S$0.0233/unit cash distribution.
The Offer is by way of a Scheme. The Offer price has NOT been declared final. A switch option into a voluntary Offer is afforded should a competing Offer emerge.
Looks pretty clean. Assuming mid-late May payment, pay up to S$0.97/share for a 4%/15% gross/annualised spread. It may trade tighter given the early distribution payment.


Paragon REIT (PGNREIT SP)'s Privatisation Offer

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>
<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>'s transformational merger with Chemist Warehouse is pending ACCC approval. ACCC is expected to announce its findings on 7 November.</li>
<li>If approvals from ACCC, NZ OIO and others are obtained, the merger could complete early 2025 and the MergeCo will have a market cap of around A$21.7bn.</li>
<li>That means upward migrations for MergoCo in the S&amp;P/ASX indices and as well as global indices. There will be significant impact on MergeCo from passive tracker buying.</li>
</ul>



Sigma Healthcare (SIG AU)'s transformational merger with Chemist Warehouse is pending ACCC approval. ACCC is expected to announce its findings on 7 November.
If approvals from ACCC, NZ OIO and others are obtained, the merger could complete early 2025 and the MergeCo will have a market cap of around A$21.7bn.
That means upward migrations for MergoCo in the S&amp;P/ASX indices and as well as global indices. There will be significant impact on MergeCo from passive tracker buying.


Sigma Healthcare (SIG AU)/ Chemist Warehouse Merger: Over US$1bn to Buy; Timing Is Important

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)

Chemist Warehouse A Winner For Sigma Healthcare

Sigma Healthcare's FY26 result underscored the value of last year's merger with the Chemist Warehouse pharmacy chain. Sigma Healthcare’s FY26...

FNArena

Chemist Warehouse A Winner For Sigma Healthcare

Sigma Healthcare's FY26 result underscored the value of last year's merger with the Chemist Warehouse pharmacy chain. Sigma Healthcare’s FY26...

FNArena

The Defensive Proposition Of Sigma Healthcare

In a turbulent market, Sigma Healthcare could prove a defensive alternative driven by Chemist Warehouse’s value offering and the company’s...

FNArena

Paragon REIT (PGNREIT SP)'s Privatisation Offer

Looks pretty clean. A 7% premium to NAV and a roughly two-year high. If payment on or around late May, I'd pay up to S$0.97/share for a gross...

David Blennerhassett

Sigma Healthcare (SIG AU)/ Chemist Warehouse Merger: Over US$1bn to Buy; Timing Is Important

ACCC announces on 7 November. If the merger is approved, there will be over US$1.1bn to buy in Sigma Healthcare - timing is important. If ACCC does...

Brian Freitas

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