Walgreens Cashes In: Slashes Cencora Stake Again In Debt-Fighting Move
Generated by AI AgentWesley Park
Friday, Feb 7, 2025 8:07 am ET1min read
COR--
Walgreens Boots Alliance (WBA) has once again reduced its stake in Cencora, Inc. (COR), a strategic move aimed at addressing its upcoming debt maturities. The company sold shares of Cencora pursuant to Rule 144 for proceeds of approximately $942 million and, subject to the completion of the Rule 144 sale, a concurrent share repurchase by Cencora of approximately $50 million. This transaction has no impact on the long-term partnership between the two companies, as Walgreens Boots Alliance remains fully committed to the strategic, mutually beneficial relationship with Cencora.
The proceeds from the sale will be used primarily for debt paydown and general corporate purposes, as the company proactively seeks to address its debt maturities in fiscal year 2026. Walgreens Boots Alliance's ownership of Cencora's common stock has decreased from approximately 15 percent to approximately 13 percent following this transaction.
This move by Walgreens Boots Alliance is part of a broader strategy to simplify its portfolio, improve cash management, and strengthen its financial position. The company has been taking decisive actions to address its debt maturities and optimize its operations. In February 2025, Walgreens Boots Alliance announced it is halting its quarterly dividend while the management team reviews and adjusts its capital allocation strategy to match its broader long-term recovery efforts.
Despite the reduction in its stake, Walgreens Boots Alliance remains committed to its long-term partnership with Cencora. The company's Chief Operating Officer, International, Ornella Barra, will continue to serve on Cencora's Board of Directors, indicating a continued collaboration between the two companies.
In conclusion, Walgreens Boots Alliance's repeated reduction of its stake in Cencora, Inc. is a strategic move aimed at addressing its debt maturities and optimizing its portfolio. The company remains committed to its long-term partnership with Cencora and continues to work together to drive mutual success.
WBA--
Walgreens Boots Alliance (WBA) has once again reduced its stake in Cencora, Inc. (COR), a strategic move aimed at addressing its upcoming debt maturities. The company sold shares of Cencora pursuant to Rule 144 for proceeds of approximately $942 million and, subject to the completion of the Rule 144 sale, a concurrent share repurchase by Cencora of approximately $50 million. This transaction has no impact on the long-term partnership between the two companies, as Walgreens Boots Alliance remains fully committed to the strategic, mutually beneficial relationship with Cencora.
The proceeds from the sale will be used primarily for debt paydown and general corporate purposes, as the company proactively seeks to address its debt maturities in fiscal year 2026. Walgreens Boots Alliance's ownership of Cencora's common stock has decreased from approximately 15 percent to approximately 13 percent following this transaction.
This move by Walgreens Boots Alliance is part of a broader strategy to simplify its portfolio, improve cash management, and strengthen its financial position. The company has been taking decisive actions to address its debt maturities and optimize its operations. In February 2025, Walgreens Boots Alliance announced it is halting its quarterly dividend while the management team reviews and adjusts its capital allocation strategy to match its broader long-term recovery efforts.
Despite the reduction in its stake, Walgreens Boots Alliance remains committed to its long-term partnership with Cencora. The company's Chief Operating Officer, International, Ornella Barra, will continue to serve on Cencora's Board of Directors, indicating a continued collaboration between the two companies.
In conclusion, Walgreens Boots Alliance's repeated reduction of its stake in Cencora, Inc. is a strategic move aimed at addressing its debt maturities and optimizing its portfolio. The company remains committed to its long-term partnership with Cencora and continues to work together to drive mutual success.
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