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.
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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.
