The chances of Sigma Pharmaceuticals getting a workable takeover offer from South Africa’s Aspen Pharmacare seem to be receding.
Sigma yesterday issued a statement which seemed to implore Aspen to up the ante from the 55c a share offered last week, which was a cut from the first suggested offer of 60c a share.
That offer is worth $648 million, but it doesn’t seem to be going down well at Sigma (which seems to be hardly in a position to really argue).
The board failed to endorse the latest, highly conditional offer from Aspen for a second time and declined to extend Aspen’s exclusivity for due diligence.
The move sent Sigma’s shares down 1.1% to A$0.45, 18% below Aspen’s offer price, reflecting doubt that the deal will go ahead.
The shares finished unchanged at 45.5c.
Sigma said it was willing to work with Aspen to help it come up with a better proposal, but made clear it was not about to cave in, despite its debt woes.
"Aspen has also been advised that such discussions should not be interpreted as a willingness on the part of the board to recommend to Sigma shareholders an offer of A$0.55 per share," Sigma’s general counsel, Sue Morgan-Dethick, said in a statement.
Aspen trimmed its offer last week following a review of Sigma’s books and a profit warning from Sigma about its generic drugs business.
Sigma said it is still looking at asset sales and reviewing expressions of interest for parts of the company, including its generics business, and told shareholders to take no action.
That seems to be an attempt to hint that there are other buyers for parts of the business out there and interested enough to talk turkey if Aspen doesn’t come to the party.
Sigma is under pressure from lenders to sell $100 million worth of assets by March to help cut debt.
Meanwhile another takeover at the small end of the market was wrapped up yesterday when US office products retailer, Staples Inc, moved to mop up the shares in Corporate Express Australia it didn’t own.
The deal is expected to close on July 26.
In March, Staples said it offered to buy the shares of Corporate Express Australia that it did not already own. At the time, Staples held more than 58% of the Australian company.
Yesterday, Staples said it has a 92% interest in Corporate Express Australia.
Staples was offering $5.60 a share for Corporate Express Australia, or $390 million for the outstanding shares.
And shares in the newly listed paints, adhesives and garden products supplier, Duluxgroup, closed at $2.54 yesterday on their first day of trading as a separate company.
They opened at $2.50 a share when trading started at 11am, which was the lower end of analysts’ expectations, but then jumped to a high of $2.78.
The company was demerged from explosives and fertiliser maker Orica, with Orica shareholders receiving one new Duluxgroup share for every Orica share held.
Duluxgroup’s brands include Dulux, Selleys, Berger Paints and Yates.
Orica, which ended down 5.6%, or $1.44, at $24.24.
