Chemist Warehouse eyes ASX listing

The news: Chemist Warehouse is in talks with pharmaceutical giant Sigma over a deal that could lead to the pharmacy chain's listing on the ASX, the Sydney Morning Herald reports. Sigma requested a trading halt at lunchtime on Wednesday pending a "potential material transaction" announcement. The two companies are reportedly in the final stages of a deal that would give privately owned Chemist Warehouse majority control of Sigma.

The numbers: Chemist Warehouse is valued at more than $5 billion and has been looking to the possibility of an ASX listing. It already has a 13.5% stake in Sigma, which has a market cap of $730.9 million. Chemist Warehouse's revenue in the year to 30 June is understood to have topped $3 billion. Sigma shares gained 2.7% to $0.765 before trading was halted.

The context: HMC Capital has been assisting Chemist Warehouse with its options for going public, which include a possible reverse listing through Sigma, the SMH reports. The trading halt on Sigma shares is expected to be eased on Friday when it makes its intended announcement.