Wesfarmers Finalise API Takeover

After various legal hurdles, the takeover of Australian Pharmaceutical Industries Ltd by Wesfarmers is now legally effective as of today.

Australian Pharmaceutical Industries lodged a copy of the orders made by the Federal Court of Australia with the Australian Securities and Investments Commission (ASIC). After the analysis was completed, the Federal Court finally approved the takeover between API and its shareholders.

Now that the scheme is legally effective, this was the last day of trading for API shares and the shares are expected to remain in suspension until the 31st of March which is when the API shareholders will be paid out for the takeover.

The final accepted bid offer for API was priced at $1.55 per share which is a 15% premium on the previous offer pitched by Wesfarmers at $1.38 last year. The agreement accepted by shareholders also includes the payment of fully franked dividends up to 5 cents a share which declared for the financial year.

Wesfarmers aims to leverage the synergies between the companies to invest in various pharmacy partners and to expand ranges, enhance the supply chain and bolster their online presence.

Rob Scott, the managing director of Wesfarmers stated: “API would form the basis of a new healthcare division of Wesfarmers and a base from which to invest and develop capabilities in the health and wellbeing sector.

The combination of Wesfarmers and API is a compelling opportunity to capitalise on API’s strengths and positioning in these markets while drawing upon Wesfarmers’ capabilities in retail and distribution, our strong balance sheet and our willingness to invest in our businesses for growth over the long-term.”