Walgreens buyout reportedly could result in three divisions

A buyout of Walgreens Boots Alliance by Sycamore Partners could reportedly result in the creation of three divisions of the company’s main businesses, The Financial Times said in a report. 

The company’s executive chair Stefano Pessina is expected to retain a substantial stake in the company as part of the deal, the report said. This follows news that Walgreens’ shares surged over 7% in premarket trading after the report, per Investing.com.

[Related: Sycamore Partners reportedly working on financing to acquire Walgreens]

Sycamore reportedly plans to take the company private initially and then separate Walgreens’ three core segments—U.S. pharmacy retailer Walgreens, UK-based Boots, and specialty pharmacy unit Shields Health Solutions—into independent entities with their own capital structures, the FT said, citing sources familiar with the matter.

Talks between the companies have been reportedly “complicated” due to the volatility in Walgreens’ stock price.

[Read more: Sycamore Partners' deal with Walgreens reportedly still possible] 

Pessina, who merged his Alliance Boots with Walgreens in 2014 and owns nearly 17% of the company, has been reportedly instrumental in the buyout discussions as he seeks to address the declining share price, per the report.