Woolworths Group has announced it has agreed to sell five per cent of the issued capital of Endeavour Group via a block trade at a price of $5.22 per share, generating proceeds of $468m.

The sale will mean that Woolworths Group’s shareholding in Endeavour Group will be approximately 4.1 per cent, and Woolworths Group has committed to retain its remaining shares in Endeavour Group for a period of at least 60 calendar days, subject to customary exceptions.

Woolworths said in a statement to the ASX that it intends to use the proceeds to return capital to shareholders and will provide an update at the Group’s F24 results in August.

Woolworths Group CEO, Brad Banducci, said: “While Woolworths Group and Endeavour Group remain important business partners, with a number of long-term partnership agreements in place, we no longer believe that a material equity investment in Endeavour Group is required as Endeavour Group approaches its three-year anniversary as an independent listed company.

“As a result, we have decided to reduce our stake below five per cent with the intention to use the proceeds to return capital to shareholders. We currently have no intention to sell the remaining stake, but will continue to assess what we believe is in the best interests of Woolworths Group shareholders.”

Endeavour Group acknowledge the selldown in its own statement to the ASX and said: “Endeavour Group will continue its relationship with the Woolworths Group with a range of partnership agreements in place.”

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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