Woolworths finally separates from the Endeavour Group

The Australian retail giant Woolworths has decided to divest its remaining stake in the Endeavour Group, which operates well-known liquor chains including Dan Murphy's and BWS. This marks the end of their long-standing association that began approximately three years ago with the demerger of the company. Woolworths, also known as 'Woolies', announced that the remaining 4.1% stake will be sold via a block trade at a price of AUD 5.23 per share. This transaction is expected to generate AUD 383 million (USD 258.75 million). In 2019, Woolworths had consolidated its hospitality and liquor businesses under the name Endeavour Drinks into a single entity and then spun it off with an initial 85% stake. Over the subsequent years, Woolworths gradually divested its stake in Endeavour. In 2022, the company sold shares worth AUD 636 million, transitioning from an owner to a partner. This past May, Woolworths sold an additional 5% stake valued at AUD 468 million. The complete exit from the Endeavour Group coincides with the start of the new financial year, which is beginning with a worse-than-expected trading situation and future outlook in the liquor sector. The proceeds from the sale are intended to be used to acquire the remaining 35% stake in PFD Food Services. “Woolworths Group's decision to sell its remaining stake in Endeavour Group and redirect the proceeds towards acquiring PFD Food Services requires better and clearer explanation,” said Ben Williamson, co-founder and co-CEO of the trading platform InvestorHub. “Woolworths should aim to provide shareholders with additional information and afford them the opportunity to ask questions about this decision.” Shares of Endeavour fell by up to 2.4% to AUD 5.21, while Woolworths shares rose by 0.5%.