Woolworths Group is looking to sell 5% of its stake in Endeavour Group in a block trade of $468 million, with proceeds to be used to return capital to shareholders.

The company is offloading 87.9 million shares in the alcoholic drinks retailer, hotel operator and poker machine operator, at a price of $5.22 per share. The sale will reduce Woolworths Group’s shareholding in Endeavour Group to approximately 4.1%.

Woolworths Group has committed to retaining its remaining shares in Endeavour Group for a period of at least 60 calendar days, subject to customary exceptions, and will provide an update at the its F24 results in August.

Woolworths Group CEO, Brad Banducci, said: “While Woolworths Group and Endeavour Group remain important business partners, with a number of long term partnership agreements in place, we no longer believe that a material equity investment in Endeavour Group is required as Endeavour Group approaches its three-year anniversary as an independent listed company. As a result, we have decided to reduce our stake below 5% with the intention to use the proceeds to return capital to shareholders. We currently have no intention to sell the remaining stake, but will continue to assess what we believe is in the best interests of Woolworths Group shareholders.”

Endeavour Group owns bottle shop businesses including Dan Murphys and BWS and Australia’s biggest pub group, ALH. The company was formally part of the Woolworths Group before being spun off as a separate entity following a restructure in 2021.