IPO first step in eventual sale

Article Excerpt

MCKESSON CORP. $139 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 186.4 million; Market cap: $25.9 billion; Price-to-sales ratio: 0.1; Dividend yield 1.1%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S. and Canada. It also operates drugstores in Europe. In 2017, the company merged most of its Technology Solutions business with privately held Change Healthcare Inc. The joint venture makes software to help hospitals, clinics and doctors manage their billing activities. On June 27, 2019, Change Healthcare Inc. (Nasdaq symbol CHNG) sold shares to the public at $13 a share. The sale raised $609 million. Change Healthcare (the public company) has no assets other than its interest in the Change Healthcare joint venture. McKesson and Change Healthcare Inc. each has 50% of the votes, although McKesson holds 60% interest in the joint venture. Change Healthcare owns the remaining 40%. McKesson plans to eventually sell its stake in the joint venture. McKesson is still a hold. hold…

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