Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) filed an 8-K on November 10, 2022, detailing two significant transactions involving Walgreens Boots Alliance Holdings LLC. The company directly repurchased approximately 3.23 million shares of its common stock from Walgreens for $500 million, at a price of $154.60 per share. These repurchased shares will be held in treasury. Concurrently, Walgreens completed a secondary public offering of 10 million shares of Cencora's common stock, in which Cencora did not participate and received no proceeds. These events are important for investors to understand the company's capital allocation strategy and the evolving relationship with a significant former shareholder.
Key Highlights
- 1Cencora (formerly AmerisourceBergen) repurchased 3,234,153 shares of its common stock directly from Walgreens Boots Alliance Holdings LLC.
- 2The share repurchase agreement was executed on November 6, 2022, with the transaction completed on November 10, 2022.
- 3The total cost of the share repurchase was approximately $500 million, with shares bought back at $154.60 each.
- 4The repurchased shares will be held in treasury by Cencora.
- 5Walgreens Boots Alliance Holdings LLC also completed a separate secondary public offering of 10 million shares of Cencora's common stock.
- 6Cencora did not sell any shares in the secondary offering and received no proceeds from it.
- 7The company entered into an underwriting agreement with Walgreens and Morgan Stanley & Co. LLC for the secondary offering.