Wesfarmers (ASX:WES) & API enter into scheme implantation deed

Conglomerate giant Wesfarmers (ASX:WES) has entered into a scheme implementation deed with Australian Pharmaceutical Industries (ASX:API) following the completion of due diligence in September. 

Wesfarmers currently owns a 19.3 per cent stake in API following the acquisition of 95.1 million shares. Under the scheme, Wesfarmers will acquire the remaining shares in API for $1.55 per share.

The scheme allows for the payment of fully franked dividends up to a maximum of 5 cents per API share, including the 2 cents per share final dividend declared by API for the financial year ended 31 August 2021, with the cash consideration of $1.55 to be reduced by the cash component of any such dividends.

The API board has unanimously recommended that API shareholders vote in favour of the scheme.

“Wesfarmers continues to see opportunities to invest in and strengthen the competitive position of API and its community pharmacy partners by expanding ranges, improving supply chain capabilities and enhancing the online experience for customers,” said managing director Rob Scott.

Shares in Wesfarmers (ASX:WES) are trading 0.5 per cent lower at $60.03. Shares in Australian Pharmaceutical Industries (ASX:API) are trading 3.4 per cent higher at $1.54.