Retail drinks and hotels business Endeavour Group (ASX: EDV) will land on the Australian Securities Exchange (ASX: ASX) today following its demerger from Woolworths (ASX: WOW).
The demerger of Endeavour and debut of the company as a standalone listed entity comes after Woolworths' shareholders voted in favour of the split last week.
The separation was an easy sell as it involved giving shareholders the same stake they already owned in Endeavour, which owns bottle shop chains Dan Murphy's, BWS, more than 300 licensed venues, and 12,000 pokie machines.
The pandemic led to long closure periods for Endeavour's pub network - a segment that accounted for 12 per cent of Woolworths' revenue in FY20 but 23 per cent of earnings.
"Joining the ASX under our own name and as a standalone business marks the next chapter in Endeavour Group's evolution," Endeavour Group chairman Peter Hearl said.
CEO and managing director of the drinks and hotels business Steve Donohue added he was excited about the future of the company.
"This is a very significant day for Endeavour Group's 28,000 team members throughout Australia, who are united around our purpose of 'creating a more sociable future together', and for our partners, customers and many other stakeholders," Donohue said.
"We are excited about the future as we continue to focus on growth and building on the successful platform we have in place through our portfolio of trusted retail brands, including Dan Murphy's BSW, as well as Australia's largest portfolio of hotels including many Australian icons such as Brisbane's Breakfast Creek Hotel and the Young & Jackson Hotel in Melbourne.
"Our teams are supported by our Pinnacle Drinks brand and manufacturing business, our industry-leading digital capabilities via EndeavourX, and the value of our ongoing partnership with Woolworths Group."
Despite the formal split, Endeavour and Woolworths will still have a connection, with the drinks business' customers able to continue to earn Everyday Rewards points on purchases made at its retail businesses.
Shares are expected to be transferred to eligible shareholders on 1 July, at which time commencement of trading on a normal settlement will occur.
Get our daily business news
Sign up to our free email news updates.