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Woolies advised on $12bn demerger
Global law firm Ashurst has advised Woolworths Group Limited on its proposed $12 billion demerger of Endeavour Group.
Emma Musgrave
Firms: Ashurst (Woolworths Group Limited); undisclosed (Endeavour Group).
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Deal: Woolworths Group Limited (Woolworths) has made a proposal to demerge from Endeavour Group in creating two independent ASX-listed companies.
Value: $12 billion.
Area: Corporate, finance.
Key players: The team advising Woolworths was led by Ashurst partners Phil Breden and Andrew Kim, with assistance from a large number of partners and team members across the firm’s practice groups.
Deal significance: If given the green light the demerger of Woolworths and Endeavour will become the fourth largest in Australian history.
“The proposed demerger is the final step in a process which began in 2019 with Ashurst advising Woolworths in relation to its restructure to create Endeavour Group through a market-leading and innovative restructure scheme of arrangement which was approved by Woolworths shareholders in late 2019. The restructure was completed in 2020, but due to COVID-19, the proposed demerger was postponed until 2021,” a statement from Ashurst explained.
“The proposal will create two independent and leading ASX-listed companies expected to be in the ASX 20 (Woolworths) and ASX 50 (Endeavour). Woolworths will continue to be Australia and New Zealand’s leading food and everyday needs business, while Endeavour will continue as Australia’s largest retail drinks and hospitality business, operating Dan Murphy's, BWS, Cellarmasters and Langton's, together with leading hospitality business ALH Group.
“Upon completion of the demerger, Woolworths shareholders will directly own approximately 70.8 per cent of Endeavour, while Woolworths and its long-term joint venture partner, BMG, will each retain a 14.6 per cent interest.”
Commenting further, co-lead partner on the transaction Mr Breden said: “We are delighted to have assisted Woolworths in the final step of the Endeavour Group transformation which if approved by Woolworths shareholders will result in two independent and leading ASX-listed companies. From the time that the Endeavour restructure commenced in 2019 it has been a privilege to work with the outstanding Woolworths team on this transformational transaction.”
