Woolies’ surprising offer, lobbed via its chairman Gordon Cairns last Wednesday night, could be 2 per cent accretive at the earnings per share line according to Citi analysts. The analysts said Woolies’ $1.75 a share indicative bid valued API at 12.1-times forecast earnings before interest and tax.
Bell Potter’s number crunchers said Woolies’ offer showed API’s board had “done a great job to build out the value of the company over the last decade and entice a competitive bidding process”.
API is a pharmacy supplies wholesaler, franchise owner and retailer, servicing Australian community pharmacies and also owning the Priceline Pharmacy chain.
It would be an adjacent bolt-on type deal for either Wesfarmers or Woolworths. API shares last traded at $1.75, in line with Woolies’ indicative bid.
