For those who've owned Sigma Healthcare Ltd (ASX: SIG) shares this year, it's been a joyful ride.
Shares in the ASX healthcare stock are up more than 148% this year to date on the back of the planned merger with Chemist Warehouse.
Sigma shares surged nearly 40% shortly after the Australian Competition and Consumer Commission (ACCC) approved the deal.
But with such a rally comes significant profits for those holding large stakes in the company.
According to ASX filings this week, HMC Capital Ltd (ASX: HMC) has completed a large sell-down in its Sigma position.
This raises the question of whether now is a prime opportunity to cash in. Let's take a closer look.
Why is HMC Capital offloading Sigma shares?
The Sigma–Chemist Warehouse deal was approved on 7 November after a lengthy review process that examined potential anti-competition impacts.
Completed via a backdoor listing, the deal saw the pair merge to create a healthcare giant that, according to the ACCC, was "unlikely to substantially lessen competition".
Sigma shares exploded higher on the news. And while plenty of investors were buying for the near-term gains, some shareholders were downsizing their positions.
HMC Capital immediately sold down its stake in Sigma, dropping its holdings from 10.64% to 8.24% on the same day as the ACCC's decision.
The asset manager's reduction in Sigma shares has been ongoing, starting back in April when it sold approximately 4% of its holdings.
HMC initially bought into Sigma at around 70 cents per share in 2022, according to The Australian, making its recent sales an exit at a solid profit.
The financial services company isn't exiting Sigma completely, however. It is just reducing its holdings.
Still, brokers are cautious about what's next. According to CommSec, consensus rates the stock a 'moderate' sell.
This comprises three sell ratings, four holds, and one broker still advising to buy Sigma shares.
Where is HMC Capital now investing?
Where or how HMC will use the funds generated from the sell-downs isn't clear. But elsewhere, the company is channelling its resources into the digital infrastructure space.
In a separate update, the company announced it acquired the iSeek data centre platform in Australia for $400 million. It marks the foundation of its planned DigiCo digital infrastructure platform.
The acquisition, alongside others, could form the basis of a future ASX-listed property trust:
These acquisitions will seed an ASX-listed DigiCo Infrastructure REIT (DigiCo REIT)
2 with [over $4 billion] of [assets under management] AUM…… Once it is established, it is proposed that DigiCo REIT will be a stapled entity consisting of a company and a registered managed investment scheme. Shares in the company will be stapled to units in the managed investment scheme on a one for one basis to form stapled securities.
Foolish takeaway
Sigma shares are in the limelight after the ACCC approved its merger with Chemist Warehouse this month.
Where to from here is a matter of economic debate, but also the fundamentals of both companies.
Sigma shares are up more than 267% in the past year.
