Walgreens is reportedly contacting potential Boots buyers

Walgreens Boots Alliance Inc (NASDAQ: WBA) is gaining at writing following a report that it’s contacting buyers who may be interested in taking over Boots.

What is Boots UK worth?

The drugstore chain based out of Nottingham, United Kingdom is worth close to $9.0 billion. 

Walgreens has already engaged with advisors to hold preliminary talks with the potential buyers, as per sources that talked to Bloomberg on condition of anonymity.

What the Nasdaq-listed firm plans on doing with proceeds provided that it does indeed secure a deal remains unclear. Lowering the debt on its balance sheet, however, may be a possibility. 

Shares of Walgreens Boots Alliance that currently pay a healthy dividend yield of 5.47% are now down more than 30% versus the start of 2024.

Watch here: https://www.youtube.com/embed/m_AzWf-w2bE?feature=oembed

Is Walgreens stock worth buying in May?

Walgreens has been interested in unloading Boots since last year. 

In 2023, Legal & General agreed to buy Boots Pension Scheme for about $6.0 billion – a deal that simplified a possible divestiture of the drugstore chain. $WBA had also considered listing the business on the London Stock Exchange.

The news arrives more than a month after the multinational said Boots UK saw a 3.0% annualised growth in sales in its second financial quarter as Invezz reported here.

Note that our market analyst Crispus Nyaga is currently bearish on shares of the Chicago-based company that constantly remains below the 50-week Exponential Moving Average. He did talk of a possible downside to $15 in $WBA in his recent analysis.

The post Walgreens is reportedly contacting potential Boots buyers appeared first on Invezz