Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has announced that it utilized Rule 144 of the Securities Act of 1933 to sell shares of Cencora, Inc. by means of variable prepaid forward transactions. The transaction occurred on Thursday and generated instant earnings of around $424 million for the company, with the possibility of further profits based on the performance of Cencora’s stocks.

Alongside the sale, Walgreens also bought back shares from Cencora, which was worth approximately $250 million. Despite these financial actions, Walgreens still holds about a 15% ownership in Cencora. These transactions not only gave Walgreens immediate access to cash but also safeguarded their voting and dividend privileges in Cencora.

The variable prepaid forward contracts will reach their maturity stage in the last quarter of fiscal year 2026. During this period, Walgreens intends to transfer 2.7 million shares of Cencora common stock to the other parties involved in the contract. The amount of additional money Walgreens may receive will depend on the price of the stock at the time of the settlement and could go as high as $137 million.

The money generated from these transactions will mainly be used to pay off debt and support various general company needs. This strategic action is a part of Walgreens’ plan to simplify its collection of assets and improve its handling of cash.

The sale will not affect the current partnership between Walgreens and Cencora, which was formed in 2013. Ornella Barra, the COO International of WBA, will continue to serve on Cencora’s Board of Directors.

Walgreens Boots Alliance is a renowned global leader in healthcare, pharmacy, and retail, providing its services to millions of people worldwide. With its operations spanning across eight countries, the company has a workforce of around 330,000 employees.

OXShare

According to OXShare’s real-time data and insights, Walgreens Boots Alliance (WBA) is showing a positive financial forecast. The company has experienced a significant increase in revenue, with a growth rate of 4.81% in the past year as of the fourth quarter of 2023. Additionally, WBA continues to be a major player in the Consumer Staples Distribution & Retail industry, with a market capitalization of 17.67 billion USD.

OXShare Tips indicate that WBA has a solid track record of consistently paying dividends for 53 successive years. This consistent payout to shareholders, combined with the fact that WBA is currently trading close to its lowest point within the past year, may make it an appealing choice for investors who prioritize dividend returns.

In addition, InvestingPro’s information shows a strong shareholder yield and a favorable adjusted P/E ratio of 10.27 in the fourth quarter of 2023. This, combined with the expectation of WBA’s net income growth for this year, indicates the possibility of future profitability. Nevertheless, it is important for potential investors to be aware that six analysts have recently lowered their earnings forecasts for the upcoming period.