Here are the stories from the S&P/ASX 200 (INDEXASX: XJO)(^AXJO) and Australian finance circles today.
The ASX 200 is expected to open lower, according to futures trading in Sydney, after a positive day on Thursday.
First, here are the data points:
Australian Dollar ($A) (AUDUSD): 72.2 US cents
Dow Jones (DJI): up 0.29%
Oil (WTI): $US52.58 per barrel
Gold: $US1,242 per ounce
ASX 200 News
In sharemarket news today, Australian Pharmaceutical Industries Ltd (ASX: API), the operator pharmacy businesses Priceline and Soul Pattinson, has announced that it now owns 12.95% of Sigma Healthcare Ltd (ASX: SIG), a wholesaler and the operator of Amcal. API wants to acquire the entire Sigma business.
The takeover offer is for each Sigma shareholder to get $0.23 cash and 0.31 API shares for each Sigma share they own. This represents a 69.3% premium to the closing Sigma share price yesterday.
The API Chairman Mark Smith said: “A combined entity would create greater efficiencies in the wholesaling business to the ongoing benefit of all shareholders.
“This, in turn, would enable the combined business to provide greater assistance to pharmacists as they respond to current regulatory impacts and increasing retail competition, enabling a strong, viable community pharmacy industry.
The merger could save API around $60 million of costs annually by year three. API intends to fund the cash part of the deal with recently secured debt facilities.
Finally, Cimic Group Ltd (ASX: CIM), the construction and engineering business, has announced to the market that it’s going to conduct a further on-market buy back of up to 10% of Cimic’s shares over the upcoming year.
Cimic said that the new buy back meets the aims of enhancing shareholder returns, capital efficiency and maintaining balance sheet flexibility to pursue future growth & investment opportunities.
The buy back will be funded by cash and working capital facilities. It will start on 29 December 2018 with the old buyback which is currently in place finishing on 28 December 2018.
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