U.S. stocks edge higher; solid earnings season continues
Walgreens Boots Alliance, Inc. (NASDAQ:WBA), a healthcare giant with a market capitalization of nearly $10 billion and annual revenues exceeding $154 billion, announced Tuesday that it will implement a temporary blackout period for participants in its employee retirement savings plans in connection with its pending merger with Blazing Star Parent, LLC. According to InvestingPro data, the company’s stock has gained over 23% year-to-date, though its overall financial health score remains weak. The information was disclosed in a statement based on a filing with the U.S. Securities and Exchange Commission.
According to the filing, each share of Walgreens Boots Alliance common stock will be exchanged for $11.45 in cash and one divested asset proceed right, subject to the terms of the merger agreement. As a result, the Walgreens Retirement Savings Plan and the Walgreens Puerto Rico Retirement Savings Plan will remove the WBA Stock Fund as an investment option. Assets held in the WBA Stock Fund will be reinvested in target date funds aligned with participants’ ages.
The company stated that the blackout period is expected to begin at 4:00 p.m. Eastern time on the last business day before Walgreens Boots Alliance common stock ceases to be publicly traded, prior to the closing of the merger. The exact start date of the blackout period has not yet been determined and depends on the closing date of the merger, which remains subject to certain conditions. The blackout period is expected to end on the third or fourth business day after it begins.
During the blackout period, plan participants invested in the WBA Stock Fund will not be able to direct or diversify assets held in the fund, make exchanges or transfers involving those assets, request a loan, take a withdrawal, or take a distribution.
On Tuesday, Walgreens Boots Alliance notified its directors and executive officers about the blackout period and related restrictions. During this time, and subject to limited exemptions, directors and executive officers will be prohibited from buying, selling, acquiring, or transferring any company common stock or related derivatives acquired in connection with their service or employment at the company.
The notification regarding the blackout period was provided to the company on Tuesday, and a copy of the notice to directors and executive officers was attached as an exhibit to the SEC filing. For investors tracking this significant corporate development, InvestingPro offers exclusive access to real-time financial metrics, merger analysis tools, and expert insights across more than 1,400 US stocks, helping you make informed decisions during crucial corporate events like this merger.
In other recent news, Walgreens Boots Alliance shareholders have overwhelmingly approved the company’s acquisition by Sycamore Partners, with approximately 96% of votes cast in favor of the deal. This transaction will see shareholders receive $11.45 per share in cash, with a potential additional $3.00 per share from future monetization of Walgreens’ interests in VillageMD. In a separate development, Walgreens has terminated two major credit agreements and launched a new $2.5 billion accounts receivable facility to repay existing debts. Meanwhile, Walgreens has reached a $300 million settlement with the Department of Justice over allegations related to opioid dispensing, which concludes a series of litigations involving the company. Evercore ISI has maintained its In Line rating on Walgreens stock, with a price target of $11.45, aligning with the acquisition price from Sycamore Partners. Additionally, Walgreens is partnering with KFF to offer free rapid HIV, syphilis, and hepatitis C testing at over 575 stores as part of National HIV Testing Day. These developments reflect Walgreens’ ongoing strategic and legal maneuvers as it navigates its business operations and regulatory challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.