The Walgreens Boots Alliance Inc (NASDAQ: WBA) share price increased after rumours emerged that it was considering an IPO of its UK pharmacy chain, Boots. The news broke via Bloomberg, which cited sources familiar with the matter.
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Walgreens is reportedly in the early stages of discussions regarding the potential separation of its UK-based Boots drugstore chain. According to sources cited by Bloomberg News, one of the options under consideration is conducting an initial public offering (IPO) for Boots on the London Stock Exchange.
The potential deal is estimated to value the drugstore chain at approximately £7 billion ($8.78 billion). Walgreens has not provided official comments on these reports in response to a Reuters inquiry.
This move comes after Walgreens abandoned its plans to sell the UK high street pharmacy chain in June of last year, citing a lack of suitable offers from third parties due to the global financial market turbulence.
The company had initiated a strategic review with a primary focus on the Boots business in January of the same year, aligning itself more with domestic healthcare interests.
The report also suggests that Walgreens may entertain new offers for the Boots business. However, these deliberations remain early, and there is no certainty that they will result in a transaction.
Boots operates a network of 2,200 stores across the UK, encompassing pharmacies health, and beauty retail outlets, as detailed on its official website.
In the wake of declining sales attributed to reduced demand for COVID-19 vaccinations and testing and cautious consumer spending due to inflation concerns, Walgreens appointed Tim Wentworth as CEO in October.
The company is placing its hopes on Wentworth, an industry veteran, to navigate these challenges in the healthcare sector. As a result of these reports, Walgreens shares saw a 1.85% increase in afternoon trading.
Walgreens Boots Alliance (WBA) share price.
The Walgreens Boots Alliance (WBA) share price was trading up 0.044% in after-hours trading.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.