Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2025 index rebal event.</li>
<li>We expect two changes for ASX 50, one change for ASX 100, and seven changes for ASX 200. Separately we see 8 ADDs and 6 DELs for ASX 300.</li>
<li>The Sigma Healthcare - Chemist Warehouse merger will be completed soon and there will be major inflows for Sigma Healthcare due to float percentage/share count upgrades.</li>
</ul>


In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2025 index rebal event.
We expect two changes for ASX 50, one change for ASX 100, and seven changes for ASX 200. Separately we see 8 ADDs and 6 DELs for ASX 300.
The Sigma Healthcare - Chemist Warehouse merger will be completed soon and there will be major inflows for Sigma Healthcare due to float percentage/share count upgrades.


Quiddity Leaderboard ASX Mar 25: LONGs up ~10% Vs SHORTs in a Month; More to Come

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Event-Driven

<ul>
<li>The ACCC has approved a merger deal between pharmacy wholesaler <strong><a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a></strong> and pharmacy franchiser Chemist Warehouse, saying the transaction won't substantially lessen competition in Australia's pharmaceutical industry.</li>
<li>The merger still requires the approval of Chemist Warehouse and Sigma's shareholders, both of which should be a formality.  Plus New Zealand's OIO. This <em>could</em> potentially wrap up late-Dec/early-Jan.</li>
<li>Sigma is up bigly as I type as investors get exposure to Chemist Warehouse's hybrid IPO. However, implied MergeCo pricing appears elevated.</li>
</ul>


The ACCC has approved a merger deal between pharmacy wholesaler Sigma Healthcare (SIG AU) and pharmacy franchiser Chemist Warehouse, saying the transaction won't substantially lessen competition in Australia's pharmaceutical industry.
The merger still requires the approval of Chemist Warehouse and Sigma's shareholders, both of which should be a formality.  Plus New Zealand's OIO. This could potentially wrap up late-Dec/early-Jan.
Sigma is up bigly as I type as investors get exposure to Chemist Warehouse's hybrid IPO. However, implied MergeCo pricing appears elevated.


ACCC Greenlights Sigma/Chemist Warehouse Merger

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a> and Chemist Warehouse (CWG) shareholders have approved the merger with 99.86% and 100% of the votes cast in favour.</li>
<li>The Second Court Hearing is on 3 February and the merger will be implemented on 12 February, which is when the passive buying could commence.</li>
<li>
<a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare</a> has continued to trade higher on a record margin and sales expansion for CWG and expected passive buying that could top A$3bn over the next few months.</li>
</ul>



Sigma Healthcare (SIG AU) and Chemist Warehouse (CWG) shareholders have approved the merger with 99.86% and 100% of the votes cast in favour.
The Second Court Hearing is on 3 February and the merger will be implemented on 12 February, which is when the passive buying could commence.

Sigma Healthcare has continued to trade higher on a record margin and sales expansion for CWG and expected passive buying that could top A$3bn over the next few months.


Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a> announced that more than 99% of the shareholders cast vote in favor of the merger with CWG. The merger now remains subject to court approval.</li>
<li>The court hearing is scheduled on February 3, 2025. If the Court approves the merger, it is expected that implementation of the merger scheme will occur on February 12, 2025.</li>
<li>CWG continued healthy performance, with double-digit like-for-like retail network sales growth and 400bps EBIT margin expansion in H1FY25. We are bullish on the long-term growth prospect of the merged entity.</li>
</ul>



Sigma Healthcare (SIG AU) announced that more than 99% of the shareholders cast vote in favor of the merger with CWG. The merger now remains subject to court approval.
The court hearing is scheduled on February 3, 2025. If the Court approves the merger, it is expected that implementation of the merger scheme will occur on February 12, 2025.
CWG continued healthy performance, with double-digit like-for-like retail network sales growth and 400bps EBIT margin expansion in H1FY25. We are bullish on the long-term growth prospect of the merged entity.


Sigma Healthcare (SIG AU): Shareholders Approves CWG Merger

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a>'s transformational merger with Chemist Warehouse is pending ACCC approval. ACCC is expected to announce its findings on 7 November.</li>
<li>If approvals from ACCC, NZ OIO and others are obtained, the merger could complete early 2025 and the MergeCo will have a market cap of around A$21.7bn.</li>
<li>That means upward migrations for MergoCo in the S&amp;P/ASX indices and as well as global indices. There will be significant impact on MergeCo from passive tracker buying.</li>
</ul>



Sigma Healthcare (SIG AU)'s transformational merger with Chemist Warehouse is pending ACCC approval. ACCC is expected to announce its findings on 7 November.
If approvals from ACCC, NZ OIO and others are obtained, the merger could complete early 2025 and the MergeCo will have a market cap of around A$21.7bn.
That means upward migrations for MergoCo in the S&amp;P/ASX indices and as well as global indices. There will be significant impact on MergeCo from passive tracker buying.


Sigma Healthcare (SIG AU)/ Chemist Warehouse Merger: Over US$1bn to Buy; Timing Is Important

Australia

Sigma Healthcare Limited wholesales and distributes pharmaceutical products. The Company offers prescription, over-the-counter, and generic drugs. Sigma Healthcare serves customers in Australia.

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Sigma Healthcare (SIG AU)

Quiddity Leaderboard ASX Mar 25: LONGs up ~10% Vs SHORTs in a Month; More to Come

There are multiple names with significant impact (10x ADV or more) expected during the March 2025 rebalance. Expected ADDs could continue to...

Janaghan Jeyakumar, CFA

ACCC Greenlights Sigma/Chemist Warehouse Merger

After more than a year, the reverse takeover of Sigma cleared the final hurdle with shareholders overwhelmingly - and unsurprisingly - giving the...

David Blennerhassett