API flags due diligence in Sigma takeover

Australian Pharmaceutical Industries expects to sign a deal to commence due diligence in its takeover bid for Sigma Healthcare.

In early December, API had offered to buy Sigma for $727 million, where shareholders of the pharmacy operator would receive 0.31 API shares and 23 cents in cash for each of their shares.

“We anticipate signing a non-disclosure agreement shortly that will then allow a due diligence process to commence,” Mark Smith, the drug distributor’s chairman, said on Wednesday.