AmerisourceBergen (NYSE:ABC) sank on a share sale by one of its major investors. Walgreens (NYSE:WBA) has cut its stake in the drug distributor, selling $1 billion in AmerisourceBergen shares. The move cuts Walgreens’ stake to about 17% from 20% and will give Walgreens funds to pay down debt and fund strategic priorities. Walgreens remains AmerisourceBergen’s largest shareholder.
Proceeds of the stock sale will be used “primarily for debt paydown and the funding of the company’s strategic priorities, including the definitive agreement for VillageMD to acquire Summit Health-CityMD.”
AmerisourceBergen has agreed to repurchase shares of its common stock from Walgreens Boots Alliance Holdings LLC in the amount of approximately $200 million in concurrence with Walgreens Boots Alliance’s sale of AmerisourceBergen shares pursuant to Rule 144.
AmerisourceBergen, according to its website, “fosters a positive impact on the health of people and communities around the world by advancing the development and delivery of pharmaceuticals and healthcare products.”
ABC shares fell $4.65, or 2.7%, to $165.81, while those for Walgreens dipped 17 cents to $40.73.
