The parent company of Boots is reportedly contemplating a £7 billion public offering in London for the well-known pharmacy chain, reigniting discussions about its exit strategy two years after a previous sale attempt was unsuccessful.
Tim Wentworth, CEO of Walgreens Boots Alliance Inc (NASDAQ: WBA), stated that they are considering all possibilities for the future direction of the UK-based retailer.
He mentioned that the American owner is exploring various strategic alternatives to enhance long-term value for its shareholders.
Back in January 2022, Boots was put up for sale with a £5 billion valuation, but the sale was called off by June due to a lack of interested buyers.
Boots has seen a 9.8% increase in retail sales in the third quarter, indicating a recovery from the reduced customer traffic experienced during the pandemic.
This uptick in performance is in stark contrast to the challenges faced by Walgreens Boots Alliance in the US, where the company reported a US$39 million operating loss in the first quarter, although this was an improvement from the previous year.
Despite a 10% increase in sales to US$36.7 billion, investors might be concerned as the company slashed its quarterly dividend by nearly half as part of its debt reduction efforts.
The group is targeting US$1 billion in savings this year through various cost-cutting measures, including closing stores.
Boots is planning to reduce its current network of 2,200 UK stores to 1,900 by the summer of 2024.
