Woolworths Group has agreed to sell 5.5% of the issued capital of Endeavour Group via a block trade at a price of $6.46 per share.

Street Talk reported that the sale of $636 million worth of Endeavour shares came as Woolworths gears up to pay about $600 million for PETstock.

Woolworths Group CEO Brad Banducci said: “Our decision to reduce our stake comes after a successful transition from ownership to partnership with Endeavour Group. The proceeds will be used for strategic investments and general corporate
purposes.”

Following the sale, Woolworths Group will retain a 9.1% interest in the drinks giant and said it has no current intention to undertake a further sell down in the short to medium term.

“Endeavour Group remains an important partner of Woolworths Group with a range of long-term partnership agreements in place,” Woolworths said in a statement.

“These include the provision of supply chain solutions through Primary Connect; a joint food and liquor offer through
co-located BWS stores and online; payment services provided by WPay; and BWS a key partner as part of Everyday Rewards. These partnerships remain on foot, with no connection to Woolworths Group’s ownership interest in Endeavour Group.

Endeavour, which includes drinks retailers Dan Murphy’s and BWS, commenced trading on the Australian Securities Exchange on 24 June 2021, following its demerger from Woolworths Group.

At the time, Chairman Gordon Cairns said: “As a separately listed entity, Endeavour Group will have a broad mandate for growth. It will be able to pursue its business strategy with flexibility to invest in its best returning opportunities and respond to changing consumer behaviours and industry conditions.”

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