Stefano Pessina Strengthens Control Over Walgreens Boots Alliance
Monégasque magnate increases stake to near 50% in $10 billion buyout maneuver.
Stefano Pessina, the 83-year-old billionaire and chairman of Walgreens Boots Alliance, is poised to significantly enhance his control over the Anglo-American pharmaceutical giant.
Reports indicate that Pessina, who currently holds a 17% stake in the company, plans to invest additional funds to increase his ownership to nearly 50% as part of a buyout estimated at $10 billion.
The maneuver, structured by investment firm Sycamore Partners, is set to provide Sycamore with a majority stake in Walgreens Boots Alliance, though details regarding the precise structure of the post-buyout arrangement are still under discussion by the group's advisors.
This development comes at a critical juncture for the Walgreens Boots empire, which operates over 1,800 stores in the United Kingdom and employs more than 50,000 individuals.
The company is currently facing intense online competition and has experienced a dramatic decline in its stock valuation.
Pessina has previously indicated a shift in his business philosophy, asserting that "globalization as we know it is over," signaling a departure from a long-standing strategy of aggressive expansion towards a focus on consolidating existing assets.
The agreement with Sycamore, announced in March at a price of $11.45 per share, represents a significant turning point for Walgreens Boots Alliance.
The company was valued at over $100 billion during the 2014 merger of Alliance Boots and Walgreens but has since witnessed a staggering 90% drop in its market value.
Internally referred to as "Project Blazing Star," this operation underscores Pessina's enduring determination to reshape the trajectory of his pharmaceutical empire.
Sir Nigel Rudd, a former chairman of Alliance Boots, has expressed confidence in Pessina's negotiating acumen, stating, "I would never bet against Stefano," a sentiment echoed by many observers in the business world as he continues to influence the future of Walgreens Boots Alliance from Monaco.
Reports indicate that Pessina, who currently holds a 17% stake in the company, plans to invest additional funds to increase his ownership to nearly 50% as part of a buyout estimated at $10 billion.
The maneuver, structured by investment firm Sycamore Partners, is set to provide Sycamore with a majority stake in Walgreens Boots Alliance, though details regarding the precise structure of the post-buyout arrangement are still under discussion by the group's advisors.
This development comes at a critical juncture for the Walgreens Boots empire, which operates over 1,800 stores in the United Kingdom and employs more than 50,000 individuals.
The company is currently facing intense online competition and has experienced a dramatic decline in its stock valuation.
Pessina has previously indicated a shift in his business philosophy, asserting that "globalization as we know it is over," signaling a departure from a long-standing strategy of aggressive expansion towards a focus on consolidating existing assets.
The agreement with Sycamore, announced in March at a price of $11.45 per share, represents a significant turning point for Walgreens Boots Alliance.
The company was valued at over $100 billion during the 2014 merger of Alliance Boots and Walgreens but has since witnessed a staggering 90% drop in its market value.
Internally referred to as "Project Blazing Star," this operation underscores Pessina's enduring determination to reshape the trajectory of his pharmaceutical empire.
Sir Nigel Rudd, a former chairman of Alliance Boots, has expressed confidence in Pessina's negotiating acumen, stating, "I would never bet against Stefano," a sentiment echoed by many observers in the business world as he continues to influence the future of Walgreens Boots Alliance from Monaco.
