EBO-Ebos

[Waltzing]

beleived but forgot to get back in when you warned at 36... busy on ZOOM calls with people very scared back last year in europe..

 

[Shareguy]

$30m traded today. Nearly got to $46.

MSCI rebalance on the close this coming Tuesday (EBO into Mid-Cap Index)

[Fiordland Moose]

Xm shares needed for the rebalance

(Edit may need to go double check my source for that, seems a rather high number)

[Fiordland Moose]

Okay got it...with EBO stepping up from the small to large cap MSCI index, the net amount of buying volume is expected to be 8-12m shares. Very high numbers indeed.

[KW]

Bunnings moves into petcare
https://www.afr.com/companies/retail/bunnings-launches-biggest-expansion-in-decades-20230224-p5cneg

In its largest category expansion since introducing kitchens nearly two decades ago, Wesfarmers-owned hardware giant Bunnings will launch a specialty pet-care department offering items ranging from food to toys and bowls for cats, dogs and birds.

The department will launch next month and include close to 1000 new items in a major expansion of its current offering of kennels, mats, bedding and pet doors, as Bunnings seeks a larger slice of the fast-growing $10 billion specialty pet sector.

[Shareguy]

Okay got it...with EBO stepping up from the small to large cap MSCI index, the net amount of buying volume is expected to be 8-12m shares. Very high numbers indeed.

Wow. High numbers all right

[winner (n)]

Chemist Warehouse update ....hmmm

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/412564/395946.pdf

[Teitei]

Chemist Warehouse update ....hmmm

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/EBO/412564/395946.pdf

Classic 'supermarket' strategy of squeezing suppliers once they have achieved scale?

[Fuzzy_Dunlop]

Yikes - it looks like it's gone, and not looking promising for a future reversion - https://www.afr.com/street-talk/sigma-healthcare-wins-ebos-s-2b-chemist-warehouse-contract-sources-20230606-p5de8v

[lorraina]

Sigma Healthcare Limited (Sigma) is pleased to announce it has signed a binding term sheet with
Chemist Warehouse for the supply of both Pharmaceutical Benefits Scheme (PBS) medicines and
Fast-Moving-Consumer-Goods (FMCG) product for a period of five years commencing on 1 July
2024.
Sigma is the incumbent supplier for FMCG product which currently represents approximately 29% of
Sigma Group net sales revenue. Under the terms of the new supply agreement, the current FMCG
contract will be renewed, and Sigma will secure the additional supply of PBS medicines to Chemist
Warehouse. Sigma estimates that total sales of products to Chemist Warehouse will generate a
minimum of $3 billion in revenue in the first full year of the contract.
Sigma CEO Vikesh Ramsunder commented: "The decision by Chemist Warehouse to award Sigma
this supply contract is wonderful news for our company and our shareholders. The contract allows
us to leverage our highly automated distribution centres and latent spare capacity after multiple
years of investment. We thank Chemist Warehouse for their confidence in our service capability
and awarding of the contract."
The consideration to be provided by Sigma for the award of the supply agreement includes:
• The issue of Sigma shares to Chemist Warehouse at the start of the supply contract. The
shares to be issued to Chemist Warehouse will represent approximately 10.7% (post
issuance) of Sigma's issued share capital and will be issued with a value of $0.642 per
share. This share placement helps align both parties' long-term strategic interests.
• A right for Chemist Warehouse to acquire certain non-core assets from Sigma, which assets
have a value of $24.5 million. If Chemist Warehouse chooses not to acquire those assets,
then Sigma will make a net cash payment to Chemist Warehouse of $24.5 million.
Once fully implemented the terms of the supply contract are anticipated to support Sigma's mediumterm EBIT margin guidance of 1.5% to 2.5%. With the current agreement continuing until June
2024, there is no impact on Sigma's existing FY24 EBIT guidance of $26 million to $31 million.
"Sigma has worked tirelessly the past 12 months to build a stronger company and to significantly
improve our operational performance for the benefit of all customers. Securing this Chemist
Warehouse contract means we will now have real scale and momentum moving into the future,'' Mr
Ramsunder said.

[Basil]

Interesting that TA gave a clear warning something wasn't right.
EBO last traded at 31.5 times last years earnings, so has been priced for very strong ongoing growth.  Hmmm

[winner (n)]

I hope so. This is material for Ebos to win. Currently Ebos has one contract (pharmaceutical)and Sigma the other (FMCG). Ebos current EBITDA from CW is A$40 to $50m which is 8 percent of FY23E EBITDA according to FB. Both contracts expire June 2024.

There is also API who are keen to win this business. Sigmas current contract estimated to be worth A$700 to A$800m so would be great to win.

Would CW put all their eggs in one basket. I doubt it.....

Some $40m to $50m hit for EBOS maybe

[Shareguy]

Looks to me that Sigma have brought the business. Still a great company in my opinion. May be a good buying opportunity🙏

[Shareguy]

Sigma has market cap A$670m and is on the ASX. Maybe Ebos should buy them. Probably would not get past Com Com.

Disc, I have no knowledge of any takeover.

[Sideshow Bob]

Sigma has market cap A$670m and is on the ASX. Maybe Ebos should buy them. Probably would not get past Com Com.

Disc, I have no knowledge of any takeover.

Sigma up 21.6% this morning.