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Walgreens Boots Alliance has revealed that its shareholders have “overwhelmingly” approved Sycamore Partner’s proposed $10bn (£7.4bn) takeover of the company.
According to the preliminary results, approximately 96% of votes cast at the special meeting by all shareholders were voted in favor of the merger agreement proposal.
In addition, approximately 95% of the votes cast at the special meeting by unaffiliated shareholders were voted in favor of the merger agreement proposal.
Under the terms of the merger agreement, WBA shareholders will receive $11.45 (£8.49)per share in cash at closing.
They will also receive one non-transferable Divested Asset Proceeds Right to receive up to an additional $3.00 (£2.22) in cash per share from the future monetization of WBA’s debt and equity interests in VillageMD, which includes the Village Medical, Summit Health and CityMD businesses.
WBA expects to close the transaction in the third or fourth quarter of calendar year 2025, subject to customary closing conditions, including the receipt of required regulatory approvals.
WBA CEO Tim Wentworth said: “We appreciate the consideration and overwhelming support from our shareholders in our value-maximising transaction with Sycamore.
“With Sycamore’s partnership, we will be better positioned to accelerate our turnaround strategy, further enhance the customer, patient and team member experience and become the first choice for pharmacy, retail and health services. We look forward to closing the transaction and entering this next chapter.”
The move has cast doubt on the future of Boots as Sycamore may consider selling off the company from the rest of WBA.
WBA shelved plans to sell Boots last year after it cut its profit outlook and announced plans to close up to 700 US stores. It first considered selling Boots in 2022 but was unable to secure a deal close to its £7bn valuation.
