News: API Sigma Healthcare Submits An Indicative Proposal To Buy Australian Pharmaceutical...

Sept 27 (Reuters) - Sigma Healthcare (SIG) :

• SUBMITTED A CONDITIONAL NON-BINDING INDICATIVE PROPOSAL TO ACQUIRE 100% OF SHARES IN AUSTRALIAN PHARMACEUTICAL INDUSTRIES
• SIGMA INTENDS TO FUND CASH COMPONENT OF PROPOSAL THROUGH NEW DEBT
• PROPOSAL IMPLIES A VALUE OF A$1.57 PER API SHARE BEFORE SYNERGIES
• SIGMA HAS IDENTIFIED AT LEAST C.A$45M PER ANNUM OF POTENTIAL COST SYNERGIES TO BE AVAILABLE FROM COMBINATION OF COMPANIES
• PROPOSAL ALLOWS FOR PAYMENT OF FULLY FRANKED DIVIDENDS BY API OF UP TO A MAXIMUM OF A$0.05 PER SHARE
• EXPECTS MERGECO BALANCE SHEET WILL BE LEVERED AT LESS THAN 2.5X NET DEBT / EBITDA UPON IMPLEMENTATION OF PROPOSAL
• API HAS DECIDED TO GRANT SIGMA ACCESS TO ALLOW SIGMA TO UNDERTAKE CONFIRMATORY DUE DILIGENCE
• API DECIDED TO COMMENCE WORKING WITH SIGMA ON NEGOTIATING AND SIGNING BINDING TRANSACTION DOCUMENTATION