Woolworths Group has agreed to sell 5% of its issued capital of Endeavour Group via a block trade at a price of $5.22 per share, generating proceeds of $468 million.

Following the sale, Woolworths Group’s shareholding in Endeavour Group will be approximately 4.1%. Woolworths Group said it has committed to retain its remaining shares for a period of at least 60 calendar days, subject to customary exceptions.

Woolworths Group intends to use the proceeds to return capital to shareholders and said it 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 5% 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.”

Woolworths CEO Brad Banducci told analysts the decision to sell down further had come in part because “there was a lot more stability” at Endeavour Group following boardroom issues late last year. He said it was also an appropriate window between sales results for both Woolworths and Endeavour Group. Endeavour Group will reveal its latest results on 6 May 2024.

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