(Reuters) – Australian retailer Woolworths on Wednesday said it was selling a 5% stake in Endeavour Group, which operates liquor stores and pubs, generating proceeds of A$468 million ($302.98 million).
The sale will happen via a block trade at a price of A$5.22 per share, Australia’s largest supermarket operator said, adding that it would now own about 4.1% of Endeavour, which it spun out as a separate company in 2021.
Woolworths said it would use the proceeds from the selldown to return capital to its investors and would provide an update at its full-year results on Aug. 28.
“We no longer believe that a material equity investment in Endeavour Group is required,” Woolworths’ outgoing CEO Brad Banducci said in a statement.
($1 = 1.5446 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Leslie Adler and Jamie Freed)
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