August 08, 2024 07:41 GMT
Walgreens Boots (WBA; B1, BB Neg) Asset sales continue
CONSUMER STAPLES
- Confirms it is considering sale or restructuring options on its stake in VillageMD (sits under loss-making US Healthcare segment). This isn't really news (was hinted at in earnings).
- It has also disclosed it lent VillageMD a $1.75b secured term loan and $500m credit facility both in Jan 2023 and says defaults under the secured loan have occurred last week. It has entered into a forbearance agreement subject to VillageMD's compliance with certain conditions - which it hasn't disclosed.
- Reminder it took a chunky $13.1b impairment charge on VillageMD earlier this year. It contributed $1.6b (+7%yoy) towards US Healthcare's $2.1b in revenues last qt, mgmt adding the co was on track to profitability. US Healthcare had a adj. -$22m loss last qtr and -$151m YTD (adj. excludes $13b impairment charge among other things).
- Unclear who is lining up to buy this - i.e. not similar to its (liquid) stake in {COR US Equity} which it continues selling down (another $1.1b last week) to raise cash for BS. Still has 10%/circa $5b of firepower there.
Presser here
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