- Walgreens Boots Alliance, Inc. (NASDAQ:WBA) sold shares in AmerisourceBergen Corporation (NYSE:ABC) for $694 million in initial proceeds.
- In a concurrent share repurchase transaction, AmerisourceBergen will repurchase about $50 million of its common stock from Walgreens.
- Walgreens will use the proceeds raised from the transaction for debt paydown and general corporate purposes.
- Also Read: AmerisourceBergen Boosts 2023 Earnings Outlook, As Q2 Profits, Sales Beat Estimates
- Walgreens Boots Alliance’s ownership of AmerisourceBergen’s common stock has decreased due to the concurrent share repurchase by AmerisourceBergen but remains at approximately 17%.
- Walgreens’s ownership of ABC common stock has not been impacted by the entry into the variable prepaid forward transactions.
- After the deal, Walgreens will maintain its voting and dividend rights in the AmerisourceBergen common stock.
- The contracts are scheduled to settle starting in the fourth quarter of fiscal year 2025, when Walgreens may receive additional proceeds of up to $204 million.
- Walgreens said the sale would not impact the long-term partnership between the two companies.
- Price Action: WBA shares closed lower by 1.33% at $31.17, and ABC shares by 1.43% at $171.44 on Thursday.
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