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Highlights
- Sigma Healthcare shares rise 10.2% to AU$2.975, marking their highest level since January 14, as merger news boosts investor confidence.
- Chemist Warehouse, SIG's merger partner, reports 13% growth in retail sales, with record 10.3% like-for-like sales growth in 1H25.
- SIG shareholders set to vote on the merger with Chemist Warehouse on January 29, with the stock up 13.7% year-to-date.
Shares of Sigma Healthcare (ASX:SIG) surged 10.2% on Tuesday, reaching AU$2.975, their highest point since January 14. This significant increase made Sigma the biggest gainer on the ASX200 benchmark index (.AXJO) for the day, fueled by positive news surrounding its merger with Chemist Warehouse.
The rise in Sigma's stock was partly driven by Chemist Warehouse’s impressive performance report for the first half of fiscal year 2025 (1H25). The pharmacy chain reported a 13% increase in retail network sales, with like-for-like sales growing at a record 10.3%. Analysts at Citi highlighted that Chemist Warehouse’s strong result suggests the combined group will likely perform well ahead of expectations.
As a result of the merger, SIG shareholders are expected to vote on the proposed deal with Chemist Warehouse on January 29. The ongoing positive market sentiment toward the merger is reflected in the stock’s trading volume, with over 8.6 million SIG shares changing hands—1.2 times the 30-day average volume of 6.9 million shares.
So far this year, Sigma’s shares have climbed 13.7%, including today’s gains, adding to an already impressive 161% gain seen in 2024. With investors reacting positively to the merger’s prospects and Chemist Warehouse’s strong growth, Sigma’s stock has enjoyed considerable momentum in recent months.
