Endeavour shares slip after Woolworths stake sale
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More news: Shares in Endeavour Group were down nearly 4% to $5.15 each after supermarket giant Woolworths sold a 5% stake in the drinks group via a block trade at a discounted price. Shares in Woolworths, which now retains only a 4.1% holding in Endeavour, were up 0.9% at $32.15 in a weak Australian market.
Woolworths to sell 5% stake in drinks group Endeavour for $468m
The news: Supermarket giant Woolworths has agreed to sell part of its stake in drinks group Endeavour for $468 million.
The numbers: Woolworths said in a statement to the ASX it would sell a 5% stake in Endeavour through a block trade at $5.22 per share, a slight discount to Endeavour's $5.36 closing price on Tuesday. Following the sale, Woolworths will retain a 4.1% holding in Australia’s biggest alcoholic drinks retailer, which owns the Dan Murphy's and BWS brands, among others.
The context: Woolworths said it would use the proceeds to return capital to shareholders. The country’s top supermarket chain spun off Endeavour through an ASX listing in June 2021, retaining a 14.6% stake, which it pared down to the current level in December 2022.
What they 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,” Woolworths CEO Brad Banducci said.
“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.”
The source: ASX
