Boots Parent Company Paid Out Billions in Dividends While Receiving Government Aid

  • Walgreens Boots Alliance extracted over $5.3bn (£4.3bn) in dividends from UK holding companies
  • Boots’ parent company Superior Holdings paid out $4.1bn (£3.3bn) to Walgreens last year
  • WBA Financial paid an additional $353m (£288m) dividend to Walgrens last year
  • Boots received £36m in furlough payments, £11m in PPE grants, and £55m in business rates relief during the pandemic
  • Walgreens denies that the dividends came from Boots UK
  • Deadline for final bids on Boots is today (16 May)
  • Potential suitors include Asda, Apollo Global Management, and Reliance Industries
  • Reliance Industries owned by India’s second-richest man, Mukesh Ambani

Walgreens Boots Alliance has reportedly extracted over $5.3 billion (£4.3 billion) in dividends from its UK holding companies, according to The Sunday Times. Despite receiving hundreds of millions of pounds in government support during the pandemic, Boots’ parent company, Superior Holdings, paid out $4.1 billion (£3.3 billion) to Walgreens last year and an additional $353 million (£288 million) the previous year. Another UK-based holding company, WBA Financial, also paid a $909.6 million (£740 million) dividend to Walgreens. Boots received £36 million in furlough payments, £11 million in PPE grants, and £55 million in business rates relief during the pandemic. However, a Walgreens spokesperson stated that these dividends did not come ‘directly or indirectly’ from Boots UK. The news comes as the deadline for final bids on Boots approaches (16 May), with potential suitors including Asda, Apollo Global Management, and Reliance Industries, owned by India’s second-richest man, Mukesh Ambani.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Walgreens Boots Alliance’s dividends and the potential bidders for Boots. It also includes relevant details about government support received by Boots during the pandemic and the deadline for final bids.
Noise Level: 3
Noise Justification: The article provides relevant information about Walgreens Boots Alliance’s dividends and potential bids for Boots, but lacks in-depth analysis or exploration of the consequences of these actions on those affected by them. It could benefit from more context and evidence to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: Walgreens Boots Alliance, Boots UK, Asda, TDR Capital, Apollo Global Management, Reliance Industries
Financial Rating Justification: The article discusses financial transactions between Walgreens Boots Alliance and its UK holding companies, as well as potential bids for the acquisition of Boots by various companies. It also mentions the impact on the valuation of Boots and the involvement of financial entities like Apollo Global Management and Reliance Industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article

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