Woolworths is set to return as much as $2 billion to shareholders if the supermarket giant wins approval to spin off its Endeavour Drinks division in late June | domp
Woolworths is set to return as much as $2 billion to shareholders if the supermarket giant wins approval to spin off its Endeavour Drinks division in late June.
Woolworths revealed it would be powering ahead with a demerger of the Dan Murphy’s and BWS owner before the end of the financial year.Shareholders will receive one share in Endeavour for every one Woolworths share they own, with the division reporting $10.3 billion in revenue last financial year. Following the demerger, Woolworths will look into returning between $1.6 billion and $2 billion to shareholders in a special dividend from the proceeds of the sale.
“The Woolworths Group Board believes that a demerger of Endeavour Group will enhance shareholder value and it will create two leading ASX-listed companies,” Woolworths chairman Gordon Cairns said.“We believe both businesses, post demerger, have strong future prospects and will benefit from greater simplicity, focus and ongoing partnership.”
Following the split-off, Woolworths will hold a 14.6 per cent interest in the new Endeavour Group alongside billionaire hotelier Bruce Mathieson due to his former 25 per cent stake in the company’s ALH hotels division.Mr Mathieson will sit on Endeavour’s board alongside current Woolworths director Holy Kramer, former Lion managing director Duncan Makeig, former Telstra CMO Joe Pollard, Woolworths executive Colin Storrie, and Nine Entertainment director Catherine West.
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