Walgreens Sells Another Stake In Distributor Cencora For $300 Million

Core Viewpoint - Walgreens Boots Alliance has sold additional shares of drug distributor Cencora for approximately $300 million, primarily aimed at debt reduction and general corporate purposes [1] Group 1: Financial Actions - The stock sale reduces Walgreens' stake in Cencora from 10% to 6% [2] - This sale follows the suspension of quarterly dividend payments to stockholders for the first time in nearly a century, as the company seeks to free up cash for a broader long-term turnaround [3] - Walgreens has been reducing its stake in Cencora and other businesses over the past four years to raise funds for priorities such as establishing a new specialty pharmacy business and enhancing healthcare services in its stores [4] Group 2: Transaction Details - The announcement included the sale of 1.3 million shares of Cencora, which were pledged under prepaid variable share forward transactions, resulting in approximately $300 million from the early settlement and concurrent sale of shares [5] - The proceeds from these transactions, along with the recent suspension of the dividend, are intended to help the company address upcoming debt maturities in fiscal 2026 [5] Group 3: Strategic Relationship - Despite the reduction in stake, Walgreens maintains that the sale does not affect the long-term partnership with Cencora, which has been a trusted partner since 2013 [5] - The Chief Operating Officer, International of Walgreens Boots Alliance, Ornella Barra, will continue to serve on Cencora's Board of Directors [5]