(Reuters) -Australian retailer Woolworths on Wednesday said it will sell a 5% stake worth A$468 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 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.
The grocer had previously said that it no longer has a “significant influence” over Endeavour after conducting a review on the 9.1% stake it previously held.
“We no longer believe that a material equity investment in Endeavour Group is required,” Woolworths’ outgoing CEO Brad Banducci said in a statement.
The retailer said it has no intention to sell its remaining 4.1% stake in Endeavour but will continue to assess the stake.
The block deal is being managed by Australian investment and advisory group Jarden. Woolies did not disclose the buyers of the shares it is selling in Endeavour.
Woolworths in 2022 had sold A$636 million of its stake in the local hospitality operator, in what it said was a transition from owning Endeavour to becoming partners.
Endeavour Group did not immediately respond to a Reuters request for comment.
($1 = 1.5454 Australian dollars)
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