Boots post-buyout accounts reveal £1.55bn dividend(4)

A document published before the accounts released today showed Stefano Pessina, Boots’ executive chairman and the manager at the centre of Kohlberg Kravis Roberts’ take-private, would reap £600 million from the delisting.

Alliance Boots, which was taken private by US buyout firm Kohlberg Kravis Roberts and businessman Stefano Pessina, paid £1.55 billion (€2.17 billion; $3.2 billion) in dividends one month after the company was taken private, according to a statement on the regulatory news service.

Boots: £1.55 billion

The amount was paid in two instalments in August less than a month after the buyout firm and Pessina, the executive chairman of Alliance Boots, acquired the company for £11.1 billion. Pessina was formerly deputy chairman of Alliance Boots.

A document published by the company in June showed that despite doubling his stake from 15 to 30 percent Pessina would receive over £600 million from the deal.  In addition, it said if the deal went through the acquisition vehicle will pay Pessina and KKR a transaction fee, reimburse their expenses, and subsequently pay them an annual “monitoring fee”.

However, a spokesman for the group said: “The cash movement is unrelated to any fees paid to shareholders and represents merely a cash movement within the group.”

The company’s EBITDA of £504 million for the six months ended 30 September 2007 was up from the £52 million in the year ended 31 March 2007. Exact comparative figures were not provided.

The results are unconsolidated and are reported because the company still has publicly traded bonds, according to the company’s spokesman.

“The only statement we have made regarding the group’s profitability is that the company is trading ahead of expectations,” he said. The full performance and financial position of the group would be published in its annual review, he said.