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    Question on SIG ( Sigma Health Care )

    Hey Team Thanks so much for your informative commentary over the past year I am keen to invest in the pending merger of SIG and Chemist Warehouse (CW ) CW has a great brand and I am excited about its future Just enquiring about your thoughts as to how best to play this Do I wait for the merger to go through and the combined entity to trade on the ASX , or invest in SIG now . I am not currently a shareholder in SIG I understand that this is general advice only All the best for the festive season and hoping you have a great 2025 Cheers David

    Answer

    Hi David,

    A hot topic of late with after the ACCC revealed it would not oppose the merger between Chemist Warehouse and Sigma Healthcare which means the merger is a very high chance to go ahead in early 2025.

    Australia’s new largest pharmacy group will supply 1000 pharmacies across CWG’s Chemist Warehouse, MyChemist, Sigma’s Amcal and Discount Drug Stores chains, enjoying a giant distribution business with 16 distribution centres.

    • Chemist Warehouse will acquire all shares in Sigma Healthcare, with Chemist Warehouse shareholders receiving approximately 85.75% of the merged entity and Sigma shareholders holding the remaining 14.25%.
    • We believe SIG is a great business by mergers often deliver complexities along their journey and we believe at least for now the benefits of the deal are reflected in the share price. In terms of US expansion, a may take time before they feel ready and competition will be stiff in Trump land.

    We are watching this merger unfold and given where the SIG shares are trading, we are on the sidelines for now around $2.60

    • We like SIG nearer $2 or will reconsider post completion.
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    Sigma Healthcare Ltd (SIG)
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