Sigma finally accepts takeover bid from Aspen, but only for its pharma division, with a price tag of A$900 million

After several months of negations, starting with an offer that was later reduced, Australia's troubled drugmaker Sigma Pharmaceuticals says that it has finally agreed in principle to sell its Pharmaceuticals Division to South Africa's Aspen Pharmacare for A$900 million ($807 million), above the last bid but still less than the original, unsolicited A$1.49 billion offer for the whole company (The Pharma Letters passim). Aspen first approached Sigma in May, offering A$0.60 a share then, in July, cut its offer to A$0.55 a share.

The anticipated proceeds from the transaction exceed Sigma's net debt, including securitized debt, the Australian firm noted, saying that the Pharmaceuticals Division comprises Sigma's generics, consumer, over-the-counter, Herron, ethical and medical products, orphan drug and manufacturing businesses.

Brian Jamieson, chairman of Sigma, said: 'Over recent months, the board has carefully considered a number of expressions of interest in relation to the whole of Sigma's business and parts of the Group. The Board has concluded that Aspen's proposal to acquire the Pharmaceuticals Division is the best alternative for Sigma shareholders.' Other 'expressions of interest' have apparently been considered.