Benzinga | Dec 6, 2021 05:31AM EST

Walgreens To Explore Options For UK's Boots Pharmacy Chain: Sky News

* Walgreens Boots Alliance Inc (NASDAQ:WBA) has reportedly lined up Goldman Sachs to advise it on reviewing options for Britain's high street chemist, Boots.

* Spinning the chain off into a separately listed company could also be a possibility, reported Sky News.

* Boots operates a network of 2200 stores and employs 55,000 people.

* In recent months, the speculation has been in the air that WBA might contemplate a sale of its British retail business, following the disposal of its European distribution arm, Alliance Healthcare, for $6.5 billion earlier this year.

* Sky News report suggests that private equity funds will inevitably be among the suitors for Boots.

* According to one analyst, the pharmacy chain's value is between ?10 billion - ?12 billion, although it is unclear whether any emerging bids will be tabled within that range.

* The likely valuation would be closer to half that range per another market source.

* The report quoted US-based Walgreens saying, "However, it is accurate that WBA announced a renewed set of priorities and strategic direction for the Group in October, which includes a more pointed focus on North America and on healthcare."

* Earlier this week, Walgreens Boots Alliance and McKesson Corp (NYSE:MCK) agreed for Walgreens to acquire the remaining 30% share of their GEHE Pharma Handel and Alliance Healthcare Deutschland joint venture in Germany.

* Price Action: WBA shares closed 4.28% higher at $46.53 on Friday.