Walgreens Boots Alliance moved to No Rating at BofA after Sycamore deal

BofA is moving to No Rating on Walgreens Boots Alliance (WBA) after the company announced a definitive agreement to be acquired by private equity firm Sycamore Partners for total consideration of up to $14.45 per share, comprised of $11.45 per share in cash at closing of the transaction and the right to receive up to an additional $3.00 per share from the future monetization of WBA’s debt and equity interest in VillageMD. The transaction provides for a “go-shop” period in which Walgreens and its financial advisor Centerview Partners will solicit and potentially receive, evaluate, and enter into negotiations with parties that offer alternative proposals, notes the analyst, who says that the shares are no longer trading on fundamentals.