General Discussion, page-30

Why big Sigma backer sold down ahead of Chemist Warehouse ruling

As the Australian Competition and Consumer Commission’s review into Chemist Warehouse’s backdoor listing, Sigma Healthcare, heats up, one of the deal’s key protagonists is taking some money off the table.Why? To lighten the load. Sigma shares have raced away as investors scramble for exposure to the soon-to-be-listed Chemist Warehouse.Having helped stitch up the deal, David Di Pilla’s HMC Capital is capitalising on some of that investor interest.

HMC Capital sold a $52 million parcel of shares via Goldman Sachs’ equities desk late on Tuesday, to cut its stake by about one-fifth.The buyers included other institutional investors – the types that have been scrambling for what is seen to be precious Sigma stock.While plenty was made of HMC Capital’s role in the $8.8 billion Sigma/Chemist Warehouse deal, it is a good reminder that HMC Capital is a financial investor. It has its own portfolio to manage, its own investors to look after and will put its needs first. If it needs to sell some stock, it will.