âMore focusâ for Woolies as $10bn drinks and pokies demerger gets underway
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Woolworths boss Brad Banducci says the companyâs $10 billion demerger of its Endeavour drinks, pubs and pokies division will leave the company better placed to tackle social issues within the business.
On Monday, the supermarket giant announced it would be powering ahead with a demerger of the Dan Murphyâs and BWS owner before the end of the financial year after the plan was delayed for a year due to COVID-19.
Woolworths to return up to $2b if drinks split approved
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Woolworths plans to hand back as much as $2 billion if shareholders approve the $12 billion demerger of its drinks and hotels business and could return even more capital if the newly independent Endeavour Group is embraced by investors.
Woolworths chief executive Brad Banducci hopes the long-awaited demerger, which was proposed in July 2019 and postponed when venues had to close because of the pandemic, will be as successful as Wesfarmers’ demerger of Coles.
Endeavour CEO Steve Donohue and Woolworths’ CEO Brad Banducci.
Dallas Kilponen/Woolworths
The Coles demerger created more than $16 billion in value for shareholders and enabled Wesfarmers to subsequently sell two-thirds of its stake for more than $2 billion in less than 18 months.
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