Walgreens Boots Alliance (WBA) has halted plans for a potential initial public offering (IPO) of its Boots UK drugstore chain, according to sources familiar with the matter, Bloomberg reported.
The company is now considering alternative options for Boots, including a potential sale.
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This news comes after Walgreens reportedly restarted discussions with potential buyers in recent weeks, including private equity companies.
Last month, reports indicated that WBA had approached potential buyers, valuing Boots at approximately £7bn ($8.9bn).
According to Bloomberg, discussions are ongoing, and WBA has not made a final decision on the future ownership of Boots.
“Walgreens Boots Alliance is conducting a strategic review of our assets to drive sustainable long-term shareholder value. All options are on the table,” a spokesperson for Walgreens told Bloomberg.
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By GlobalDataThis news follows a period of declining share value for Walgreens. The company’s stock price has fallen by roughly half in the past year, leaving its market capitalisation at $13.7bn.
WBA reported a net loss attributable to the company of $5.9bn for the second quarter (Q2) of financial year 2024 (FY24), against net earnings of $703m recorded in the same quarter of FY23.
The retailer also recorded an operating loss of $13.2bn in Q2 FY24, compared to an operating income of $197m in the same quarter of last year.
WBA previously explored an exit from Boots in 2022, nearly a year and a half after abandoning a planned sale.
A potential sale would mark a significant shift, unwinding the transatlantic merger between Walgreens and Boots that began more than a decade ago.
Boots has garnered interest from various potential buyers in the past, including billionaire Mukesh Ambani’s Reliance Industries and private equity businesses such as TDR Capital and Apollo Global Management.
It remains to be seen who, if anyone, will ultimately acquire the UK drugstore chain.
