KEY POINTS:
Life Pharmacy has confirmed its interest in making a full takeover bid of $9.20 a share in Pharmacy Brands, although it has to raise capital and get shareholder approval first.
It is moving quickly because Pharmacy Brands shareholders will soon vote on a partial takeover by Pharmacy Retailing (NZ) or ProPharma.
ProPharma wants to buy API Healthcare's 67 per cent stake in Pharmacy Brands for $8.40 a share. Pharmacy Brands shareholders will asked to approve the purchase at a special meeting on April 20.
In March, the last issue price for Pharmacy Brands shares was $5.50.
Life said it was looking to raise extra cash by privately placing shares with a "small number of habitual investors".
The placement would be subject to approval from Life Pharmacy shareholders at a meeting on April 24. If approval and funding is forthcoming, Life would make a formal takeover offer, conditional on getting 75 per cent of PBL's shares.
Life Pharmacy's chairman, Liz Coutts, said a takeover would bring benefits to shareholders and the pharmacists and staff of both companies.
"It is clear to us that combining our businesses will result in significant operational synergies and common strategic objectives, and that both businesses have a strong desire to strengthen their respective brands."
Coutts said Life would have preferred to extend its proposed share offer to shareholders and pharmacists in both companies. But she said there was no time to legally issue a prospectus in time for PBL's special meeting.
Life Pharmacy Ltd holds a 49 per cent shareholding in 17 pharmacy companies involved in the 21-store Life Pharmacy chain.
Pharmacy Brands is New Zealand's biggest pharmacy group, formed from the merger of Amcal Chemists, Unichem and Dispensary First.
- NZPA
