Pharmacy benefits-management company Express Scripts plans to sell 23 million shares of common stock to raise additional cash for its planned $4.7 billion purchase of Indianapolis-based WellPoint’s pharmacy benefits-management business.
The public offering is expected to raise between $1.4 billion and $1.6 billion, according to a news release. The cash will be used to exercise an option within the purchasing agreement that allows Express Scripts to deliver an all-cash payment to WellPoint instead of the initially agreed upon arrangement of $1.4 billion worth of Express Scripts common stock plus $3.3 billion in cash.
The WellPoint acquisition is expected to close in the next three to six months.
