PROXY advisory firm Ownership Matters has recommended that shareholders of Sigma Healthcare vote in favour of Chemist Warehouse's reverse takeover of the pharmaceutical company, citing significant shareholder value.
Sigma Healthcare will conduct a shareholder meeting on 29 Jan to seek approval for the deal, which will create a $5.8 billion entity.
As part of the deal, Chemist Warehouse will buy Sigma for stock and $700 million in cash, giving it a roughly 85% stake in the merged entity and a back door to list on the Australian Stock Exchange.
Sigma shares have surged more than 300% since the announcement of the deal.
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