Sycamore Partners is planning a three-way split of Walgreens Boots Alliance if a deal to take the struggling pharmacy chain private is reached, the Financial Times reported on Thursday, citing people familiar with the matter.

Walgreens’ three businesses – US retail pharmacy, Boots UK and US healthcare – will be separated and have distinct capital structures, according to the report. Sycamore and Walgreens both declined to comment on the report.

Shares of the Deerfield, Illinois-based company rose 5 percent to $11.62 in early trading.

The report “marks another twist in the potential go-private story” for Walgreens, Leerink analyst Michael Cherny said.

Walgreens has reportedly been in talks to sell itself to private equity firm Sycamore since December, but a deal is yet to be reached.

Media reports have also pointed to issues with financing for a buyout and discussion with Sycamore briefly falling out.

The financing of the take-private deal is not expected to be an obstacle, according to the FT report.

Walgreens’ executive chairman Stefano Pessina, who currently holds a 17 percent stake, is expected to maintain a significant share of the company, it added.

By Bhanvi Satija and Sriparna Roy; Editing by Tasim Zahid and Shailesh Kuber

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