Mr Vincent declined to comment on whether he was sticking around at API.
Wesfarmers’ successful completion of the takeover comes after a protracted near nine-month battle for one of the major drug wholesalers in Australia.
API chairman Kenneth W Gunderson-Briggs called Thursday “a significant day in the history of API”.
“Your API directors believe the total cash value of the scheme recognises the value of API’s existing business, and it’s medium and longer-term potential,” he said.
“The scheme provides certainty, by virtue of the payment of cash proceeds in the near term for API shareholders.”
One shareholder wanted to know why API was selling out too cheaply.
As foreshadowed by Street Talk, proxy votes showed 95.24 per cent of the shares in favour – easily meeting the requirement for at least 75 per cent of the votes to accept the scheme proposal.
Community pharmacists
Wesfarmers boss Rob Scott fended off smaller rival Sigma Healthcare, then latecomer Woolworths, which made a higher indicative offer, but later pulled out, leaving the $1.55 all-cash bid (less dividends) from Wesfarmers the winner.
Mr Scott was unavailable to comment on Thursday. He previously promised to respect the independence of community pharmacists and is expected to give an update on his plans at Wesfarmers’ investor day on June 2.
API operates company-owned Priceline stores with no pharmacy attached. It also has Priceline Pharmacy-franchised stores, which must be owned and controlled by pharmacists under the pharmacy business ownership laws across NSW, Victoria and Queensland. The API network totals 474 stores.
Wesfarmers spun off Coles supermarkets in 2018 but retains a connection via its loyalty program FlyBuys. Mr Scott has given a commitment that no API data will be shared with the supermarket side of FlyBuys, and no supermarket data will be available to the API team.
This is an important step in seeking to win over the pharmacists and franchisees since supermarkets are the biggest competitors in over-the-counter products such as beauty and vitamins.
Some current and former franchisees of the company claim in a class action that API had excessive control over their pharmacies and required them to pay fees in breach of state regulations. Former Federal Court judge Ron Merkel, QC, has been drafted to lead a team of barristers acting for the plaintiffs in Melbourne.
The new health division of Wesfarmers, which also owns Kmart and Bunnings, will be overseen by Emily Amos, who takes up her new role at the end of April.
The court is expected to approve the deal on March 21, and API will stop trading on the ASX the following day.
