Chemist Warehouse and the chequered history of backdoor listings on the ASX
The pharmacy retailing giant won't be involved in the first reverse merger on the ASX. But it would be the biggest by far.
If Chemist Warehouse's plan to back its business into Sigma Healthcare gets past regulators, it won't be the first reverse merger on the ASX. But it would be the biggest.
The blockbuster deal, which was confirmed on Monday, has sparked a wave of excitement across the Australian investment landscape, even though it means a long-awaited IPO of the massive retail chain will no longer transpire.
“On face value this deal represents some good value for both Chemist Warehouse and Sigma shareholders and will add some significant strength to the health/pharmaceuticals sector,” said Trent Primmer, Director of Trading at Barclay Pearce Capital.
Backdoor listings or reverse mergers involve bigger unlisted companies being 'acquired' by a smaller listed entity. It is an alternative to a traditional IPO, and particularly common in the mining sector.
