Endeavour Group (ASX:EDV) share price falls on ASX debut

The liquor and hotels company hit the ASX today after its split from Woolworths. Here are the details

| More on:
Group of people toasting with wine

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Endeavour Group Limited (ASX: EDV) shares finally made their way onto the ASX today. This comes after the Woolworths Group Ltd (ASX: WOW) decided to spin off its liquor and hotels business.

The Endeavour share price opened this morning at $6.50, before falling to $6.10 at the time of writing.

Why did Woolworths demerge Endeavour?

Back in 2019, Woolworths announced it planned to demerge from its 85.4% holding in Endeavour. Although the restructure was completed in 2020, COVID-19 forced the postponement of the proposer demerger until 2021.

The retail conglomerate said the reason for the split was to maximise Woolworths' shareholder value over time. In addition, this would also create a simpler operating model which focuses on food and everyday needs.

As a result of the split, eligible shareholders receive 1 new Endeavour share for every share owned in Woolworths. This gives Woolworths and long-term joint venture partner, BMG, a 14.6% remaining interest each in Endeavour.

Managing director and CEO of Endeavour Steve Donohue said:

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.

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 and BWS, 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.

More on the Endeavour share price

Endeavour holds a portfolio of 332 hotels, 1,775 liquor licenced venues, 12,364 poker machines and 290 TABs and KENO outlets. As a whole, this makes the company one of the largest gaming operators and owner of poker machines in Australia.

At today's price, Endeavour has a market capitalisation of roughly $10.8 billion, with almost 1.8 billion shares on its registry.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was mayhem on the markets today, with one of the worst days in a long time for ASX shares.

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Share Market News

The Aussie stock market just wiped out all of 2024's gains! Time to buy?

We're back to the start for 2024 after another negative session. Is there a way for investors to make the…

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Share Market News

Insiders are buying Mesoblast and these ASX shares

Insiders seem to see value in these shares.

Read more »

a sad gambler slumps at a casino table with hands on head and a large pile of casino chips in the foreground.
Share Fallers

'Catastrophic' risk: Why Star shares have lost 25% in 4 days

The outcome of this inquiry could determine whether Star Entertainment hits Blackjack or bust.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which little ASX iron ore stock is surging 68% on big news

Investors are bidding up the iron ore miner following a promising project update.

Read more »

A male investor erupts into a tantrum and holds his laptop above his head as though he is ready to smash it, as paper flies around him, as he expresses annoyance over so many new 52-week lows in the ASX 200 today
Share Fallers

Why Domino's, Macmahon, Star, and Zip shares are sinking today

These ASX shares are falling more than most today.

Read more »

a woman holds her hands up in delight as she sits in front of her lap
Share Gainers

Why Decmil, SCEE, Spartan Resources, and Telix shares are pushing higher

These shares are avoiding the market selloff today.

Read more »

A wine technician in overalls holds a glass of red wine up to the light and studies is closely with large wine barrels in the background, stored in a brick walled wine cellar.
Broker Notes

2 undervalued ASX 200 shares with 'significant catalysts ahead'

We reveal the ASX 200 coal and wine stocks that this fund manager has selected for additional investment.

Read more »