Walgreens Reduces Cencora Stake to 6% for Debt Relief

Walgreens Boots Alliance has sold additional shares in drug distributor Cencora, netting approximately $300 million and reducing its stake from 10% to 6%. This sale is part of Walgreens' ongoing strategy to generate cash to address upcoming debt obligations and support a broader financial turnaround, which includes closing over 1,200 stores and suspending its quarterly dividend payments for the first time in nearly a century. The latest transaction included a repurchase of about $50 million worth of shares by Cencora and was executed alongside early settlements of prepaid variable share forward contracts. Walgreens has been gradually decreasing its stake in Cencora since 2020, having previously sold significant shares to fund new healthcare initiatives. Despite the reduction in ownership, Walgreens emphasizes that its long-term partnership with Cencora remains intact. The company aims to use the proceeds to enhance its capital efficiency and operational health amidst a challenging market environment.