Australian Pharmaceutical Industries Receives $ 509 Million Buyout Proposal From Wesfarmers

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SYDNEY: Australian Pharmaceutical Industries announced on Monday that it has received an unsolicited, non-binding takeover proposal from retail conglomerate Wesfarmers, which values ​​the operator of the drugstore chain at A $ 679.9 million (AU $ 508.9 million Australian dollars).

As part of the offer, shareholders of the pharmaceutical company would each get AU $ 1.38, a 20.5% premium over API’s last close of AU $ 1.145 on Friday.

The deal would give Wesfarmers access to API’s network of retail stores, skin care clinics and a pharmaceutical and healthcare distribution network, marking Wesfarmers’ entry into the industry. health of the country.

“If the proposal is successful, the API would form the basis of a new healthcare division of Wesfarmers and a base from which to invest and develop capacity in the health and wellness sector,” said Wesfarmers in a separate exchange folder.

API’s main shareholder, Washington H Soul Pattinson Co, which owns 19.3% of the pharmaceutical company, has indicated its support for the proposal and has agreed to vote in favor, the retail conglomerate added.

Earlier, API said in a separate filing that it would stop manufacturing personal care and over-the-counter products in New Zealand in an effort to streamline its business, and reported declining profits for the company. full year ending August 31.

($ 1 = AU $ 1.3360)


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