Woolworths Group has agreed to sell its remaining shares in Endeavour Group, equivalent to approximately 4.1% of the issued capital, via a block trade at a price of $5.23 per share.
The sale will generate proceeds of $383 million. Woolworths Group said ir intends to use the proceeds to fund the acquisition of the remaining 35% in PFD Food Services Pty Limited.
According to the Australian Financial Review the $383 million block trade was handled by Goldman Sachs last Friday night, and came “after a handful of investment banks pitched the supermarket giant to win the lucrative selldown mandate”.
In May, Woolworths Group 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.
At the time, 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 shareholders voted overwhelmingly in favour of the demerger of the Endeavour Group in June 2021.
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