Australian retail giant Woolworths has concluded its exit from Endeavour Group, the operator of Dan Murphy’s and BWS, by selling its remaining 4.1% stake in the liquor store and pub operator. The sale, executed through a block trade at A$5.23 per share, has netted Woolworths A$383 million (approximately $258.75 million).
Woolworths, Australia’s largest supermarket chain, first spun off Endeavour Group in 2019, merging its liquor and hospitality businesses into what was initially known as Endeavour Drinks. At the time of the spin-off, Woolworths retained an 85% stake in the newly-formed entity.
Over the past few years, Woolworths has been gradually reducing its stake in Endeavour Group. In 2022, it sold a substantial portion of its holding, valued at A$636 million. Earlier this year, Woolworths sold an additional 5% stake for A$468 million. The recent sale marks the end of Woolworths’ direct investment in Endeavour Group.
The decision to exit Endeavour Group comes amid challenging trading conditions in Woolworths’ liquor segment and a transition towards focusing on other areas of growth. The proceeds from this sale will be allocated towards the acquisition of the remaining 35% stake in PFD Food Services, a move Woolworths is pursuing as part of its strategic realignment.
Ben Williamson, co-founder and co-CEO of InvestorHub, has called for more transparency regarding Woolworths’ decision, urging the retailer to provide further details to shareholders about the rationale behind the move and the strategic benefits of the PFD Food Services acquisition.
Following the announcement, shares of Endeavour Group experienced a slight decline, dropping by 2.4% to A$5.21. In contrast, Woolworths’ shares saw a modest increase of 0.5%.
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