KKR to sell 15 million shares of Walgreens Boots Alliance

DEERFIELD, Ill. - Walgreens Boots Alliance on Thursday announced that affiliates of KKR intend to offer for sale in an underwritten secondary offering 15 million shares of the company’s common stock pursuant to the shelf registration statement filed by the company with the Securities and Exchange Commission on Feb. 17, 2016.

 

The selling stockholders also intend to grant the underwriter a 30-day option to purchase up to an additional 1.5 million shares of the company's common stock.

 

The company previously issued to the selling stockholders an aggregate of almost 52.5 million shares of common stock in connection with the company’s strategic combination with Alliance Boots completed in December 2014. The shares to be sold by the selling stockholders represent approximately 29% (or 31% if the underwriter exercises its option in full) of their aggregate shares owned prior to the offering, and, following the offering, the selling stockholders will own more than 37.4 million shares in the aggregate. 

 

Walgreens Boots Alliance is not selling any shares and will not receive any proceeds from the proposed offering. Dominic Murphy, member and head of U.K. and Ireland, head of health care industry team - Europe, KKR, will remain a member of the company’s board of directors after the completion of the proposed offering.

Citigroup will act as the sole underwriter for the offering and proposes to offer the shares of common stock from time to time for sale in one or more transactions on the Nasdaq Stock Market, in the over-the-counter market, through negotiated transactions or otherwise at prevailing market prices, at prices related to prevailing market prices or at negotiated prices. 

 

The last reported sale price of the company’s common stock on May 5, 2016 was $81.46. The company filed an automatically effective shelf registration statement (including a prospectus) with the SEC for the offering.