When will Chemist Warehouse shares be trading on the ASX?

A $9 billion monster is being created but when can you invest?

| More on:
Female pharmacist smiles with a digital tablet.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Earlier today, Sigma Healthcare Ltd (ASX: SIG) shares returned from their trading halt with an almighty bang.

Investors were scrambling to buy shares in response to its proposed merger with Chemist Warehouse.

If it completes successfully, this merger will create a ~$9 billion industry behemoth with earnings before interest and tax of $495 million.

Unsurprisingly, investors may now be wondering when they will be able to buy Chemist Warehouse shares. Well, let's take a look and find out.

When will Chemist Warehouse shares be trading on the ASX?

Firstly, you don't technically have to wait for Chemist Warehouse shares to arrive on the ASX boards if you want them in your portfolio.

That's because if the merger with Sigma Healthcare goes ahead, the Amcal owner's shares will become the shares of the merged entity, which is currently known as MergeCo.

Therefore, anyone owning Sigma shares today will own a slice of MergeCo if shareholders and regulators approve the transaction.

But when might that happen?

While the Sigma share price reaction today appears to indicate that the market is both happy with the merger plan and believes it will complete successfully, there's still a bit of work to be done before then.

Sigma's management notes that the proposed merger is expected to complete in the second half of calendar year 2024 if all goes to plan. But it could be worth the wait according to them.

Chemist Warehouse's chair, Jack Gance, believes the merger is the start of another big chapter. He said:

The combination of CWG's retailing and marketing capabilities and Sigma's state-of-the-art distribution infrastructure and logistics capabilities presents a unique opportunity for both CWG and Sigma shareholders. We look forward to building the next chapter of CWG's success for the benefit of our customers, staff, franchisees and shareholders.

This view was echoed by Sigma's chair, Michael Sammells. He adds:

The Proposed Merger is a step-change event for Sigma. With Sigma having had a commercial relationship with CWG and its founders spanning more than 40 years, we are excited by the efficiencies, synergies and growth opportunities that we anticipate being unlocked through the merger of the two complementary businesses. The combined group will have extensive capabilities and expertise to benefit franchisees and customers, including through more brand choice, products and services and expanded marketing capabilities.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Man in business suit carries box of personal effects
Healthcare Shares

Monash IVF shares jump 9% as CEO quits after second embryo incident

Two incidents at its clinics have cost this CEO his job.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Guess which ASX 200 stock turned $5,000 into $34,264 in just three years!

Investors have been piling into this ASX 200 stock for years, sending the share price soaring.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Healthcare Shares

Cochlear shares sink 9% on guidance downgrade

Investors haven't responded positively to this update. Let's dig deeper into it.

Read more »

Scientists working in the laboratory and examining results.
Healthcare Shares

Telix shares push higher on investor day update

This radiopharmaceuticals company has grand plans for the future.

Read more »

Shot of a young scientist using a digital tablet while working in a lab.
Healthcare Shares

3 leading ASX healthcare shares with global reach

These 3 healthcare companies are having an outsized impact far beyond local markets.

Read more »

Man looks shocked as he works on laptop on top a skyscraper with stockmarket figures in graphic behind him.
Healthcare Shares

Macquarie tips more than 100% upside for this ASX All Ords healthcare stock

This company could be set to soar.

Read more »

A little boy, soon to be a brother, kisses and holds his mum's pregnant tummy.
Healthcare Shares

Monash IVF shares fall 25% following second embryo incident

Its been a forgettable start to 2025 for Monash IVF shareholders.

Read more »

Shot of two young scientists using a laptop in a laboratory.
Healthcare Shares

Buying CSL shares? Meet your new board director

CSL’s new board director has spent the last 11 years in an executive role at Australia’s $240 billion Future Fund.

Read more »