11 November 2021 - Deborah Wilkes
Wesfarmers looks set to acquire Australian Pharmaceutical Industries (API) and Walgreens Boots Alliance (WBA) has hired a vice president of global investor relations.
Wesfarmers set to acquire API
Australian conglomerate Wesfarmers looks set to acquire Australian Pharmaceutical Industries (API) in a deal valuing the company at around AUD764 million (USD560 million).
Sigma Healthcare has withdrawn its competing takeover proposal for API which owns the Priceline Pharmacy chain as well as the Soul Pattinson Chemist and Pharmacist Advice brands. Australian wholesaler and retailer Sigma commented that it still believed the merger with API made “economic, commercial and strategic sense”.
API and Wesfarmers have entered into a Scheme Implementation Deed (SID). The two companies said this confirmed the terms of Wesfarmers’ proposal announced on 16 September 2021 to acquire all shares in API for a cash consideration of AUD1.55 per share (click here to read the News story).
Wesfarmers currently owns a 19.3% shareholding in API following the acquisition of 95.1 million shares on 7 October 2021 (click here to read the News story).
API’s Board has unanimously recommended that API shareholders vote in favour of the takeover proposal. Each API director intends to vote their shares in favour of the proposal, in the absence of a superior proposal and subject to an independent expert concluding the proposal is in the best interests of API shareholders.
A meeting of API shareholders is expected to be held in the first quarter of 2022. If approved, the takeover proposal will be implemented soon afterwards.
Rob Scott, managing director of Wesfarmers, said the acquisition of API would provide an “attractive opportunity to enter the growing health, wellbeing and beauty sector”.
Scott added that Wesfarmers saw opportunities to “invest in and strengthen the competitive position of API and its community pharmacy partners by expanding ranges, improving supply chain capabilities and enhancing the online experience for customers”.
WBA hires vice president, global investor relations
Walgreens Boots Alliance (WBA) has hired Elanco’s Tiffany Kanaga as vice president, global investor relations.
Kanaga joins WBA from Elanco Animal Health where she was head of investor relations.
Prior to that, Kanaga was a research analyst on Deutsche Bank’s Apparel & Food Retail team. She has also worked for Anheuser-Busch InBev, Buckingham Research Group, Citi Research, Dresdner Kleinwort Wasserstein and JP Morgan Chase’s Consumer Retail group.
Kanaga will report to James Kehoe, WBA’s executive vice president and global chief financial officer.
She takes over from Gerald Gradwell – senior vice president, investor relations and special projects – who is leaving WBA at the end of November 2021.