SIGMA HEALTHCARE LTD (SIG.AU) shares plummeted 5.14% during intraday trading on Wednesday, as investors reacted to news of the company's potential involvement in a massive acquisition deal.
The stock decline followed reports that Sigma Healthcare is in talks with the billionaire Weston family regarding a potential $10 billion sale of UK pharmacy chain Boots, according to Financial Times. Sigma Healthcare subsequently confirmed it has engaged in preliminary discussions in relation to a sale process while cautioning that there is no certainty any transaction will eventuate.
Market participants appear concerned about the financial implications and execution risks associated with such a large-scale acquisition for the Australian pharmacy group. The company stated it continuously reviews opportunities that would create value for shareholders, but the market reaction suggests skepticism about the potential Boots deal.