Sale via block trade at A5.22 apiece
Endeavour shares fall as much as 5
Stake sale timing slightly unusualanalyst

May 1 Reuters Australian retailer Woolworths said on Wednesday that it would sell a 5 stake worth A468 million 302.84 million in Endeavour Group, almost three years after spinning out the liquor store and pub operator.

The sale will happen via a block trade at a price of A5.22 per share, Australia39;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.

Shares of Woolworths slipped 0.4, while those of Endeavour were down 5 in early trade.

Woolworths said it would use the proceeds from the selldown to return capital to its investors and provide an update in its fullyear results on Aug. 28.

The grocer in January indicated that it no longer had significant influence over Endeavour after conducting a review on the 9.1 stake it held.

We no longer believe that a material equity investment in Endeavour Group is required, Woolworths39; outgoing CEO Brad Banducci said in a statement on Wednesday.

The retailer said it had no intention to sell its remaining interest in Endeavour but would continue to assess the stake.

Phillip Kimber, a retail analyst at EP Capital, said Woolworths would now have more than A1.5 billion to return capital to its shareholders, which would translate to over A1.25 per share.

The timing of the stake sale is however slightly unusual being a few…