Lew looks to offload his stake in API

Stockbrokers were last night working to secure a deal to offload Solomon Lew’s 12 per cent stake in API.

Stockbrokers were last night working to secure a deal to offload Solomon Lew’s 12 per cent stake in Australian Pharmaceutical Industries, a move that is set to remove a key agitator in the chemist wholesaler.

The transaction was being handled by prominent stockbroker Brent Potts and, if completed, would deliver the billionaire retailer a $102 million windfall.

Mr Lew’s privately owned SL Nominees has more than 58.1 million shares in API.

API, which also owns pharmacy brand Soul Pattinson, Price­line and a wholesale pharmacy business, has a chequered history with Mr Lew. He has previously used his stake to lodge a protest vote against the board.

Mr Lew has previously expressed his frustration with the management of the company, which is facing headwinds from changes to the Pharmaceutical Benefits Scheme, subdued consumer confidence and the potential entry of retailers Coles and Woolworths into the pharmacy market.

Investment house Washington H. Soul Pattinson has a 24.6 per cent stake in the pharmacy interest.

API recently posted a net profit of $21.3m for the six months to February 28, compared to a loss of $115m a year ago. The company had 400 Price­line stores at the half-year.

The Harper competition review recently recommended the end of pharmacy ownership and location rules. At the same time players like Coles have supported the push from hospital owner Ramsay Healthcare, which also wants to roll out full-line pharmacies at its hospitals and clinics.

Mr Lew last year sold a 10 per cent blocking stake in Country Road to South Africa’s Woolworths Holdings.