'Walgreens To Revive Discussions On £7 Billion Boots Exit, Sources Say' - BNN Bloomberg
Portfolio Pulse from Benzinga Newsdesk
Walgreens Boots Alliance Inc. is considering a potential exit from its UK-based Boots drugstore chain, which could be valued at about £7 billion. The company is exploring options, including a London IPO, and may invite fresh offers for Boots. The process is expected to start next year at the earliest. Walgreens, now in cost-cutting mode under new CEO Tim Wentworth, had its credit rating cut to junk by Moody's due to high debt. The company previously attempted to sell Boots in 2022 but abandoned the effort due to unsatisfactory valuations and a turbulent credit market.
December 12, 2023 | 5:32 pm
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Walgreens Boots Alliance is exploring a sale or IPO of Boots, valued at £7 billion. The company is in cost-cutting mode and has a new CEO. Moody's downgraded WBA's credit rating to junk, reflecting high debt levels.
The news of a potential sale or IPO for Boots indicates a significant strategic shift for WBA, which could impact investor sentiment. However, the credit rating downgrade and the fact that the process won't start until next year introduce uncertainty, making the short-term impact neutral. The importance is high due to the potential valuation of the deal and its implications for WBA's focus and debt structure. The confidence level is not at the maximum because the discussions are preliminary and there's no certainty of a transaction.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 100